Paper Money - Vol. LIII, No. 6 - Whole No. 294 - November/December 2014

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Table of Contents

Holiday Currency Gift Cards--A Narrative--Mark Anderson & Len Glazer

The Birth of Star Notes--Peter Huntoon and Lee Lofthus

Treasury Dept. Rectangles on 2nd Issue Fractional Currency--Rick Melamed

Uncoupled--Joe Boling & Fred Schwan

Zimbabwe's Plunge into Monetary Madness--Carlson Chambliss

An update on Unlisted Sterling, AL Notes--Bill Gunther

George McGovern's Promissory Note--Loren Gatch

No $5 S.C. I-A or J-A Block Mules--Jamie Yakes

Wow, What a Sheet--Robert GIll

Johnathan Bliss & The Greenville (AL) Insurance Co.--Bill Gunther.

Paper Money Vol. LIII, No. 6, Whole No. 294 November/December2014 Official Journal of the Society of Paper Money Collectors Happy Holidays Pierre Fricke offers David Hogan CSA Collection Pierre Fricke, P.O. Box 1094, Sudbury, MA 01776;; T-1 PF-1 PCGS AU-58 CC! One of the finest! T-2 PF-1 PCGS VF-30 PPQ! Rare original note! T-4 PF-2 PCGS XF-45 App – eye appeal! T-11 PF-4 PCGS VF-25 App – Rare original!! Tiny edge nicks, trace of mounting T-12 PF-1 PCGS About Uncirculated 50 T-15 PF-1 PCGS VF-30 CC – gorgeous! T-35 PCGS VF-25 rare original! T-47 PF-1 PCGS VF-35 App One of best PCGS/PMG graded! Minor edge repair More CSA – including high grade/eye appeal T-22, 23, 31, 33, 37, 38, and Gem T-64 RED! Price on Request (POR) – or see Terms and Conditions  PAPER MONEY (USPS 00-3162) is published every other month beginning in January by the Society of Paper Money Collectors (SPMC), 101-C North Greenville Ave. #425, Allen, TX 75002. Periodical postage is paid at Hanover, PA. Postmaster send address changes to Secretary Benny Bolin, 101-C North Greenville Ave #425, Allen, TX 75002. ©Society of Paper Money Collectors, Inc. 2014. All rights reserved. Reproduction of any article in whole or part without written approval is prohibited. Individual copies of this issue of PAPER MONEY are available from the secretary for $8 postpaid. Send changes of address, inquiries concerning non- delivery and requests for additional copies of this issue to the secretary. MANUSCRIPTS Manuscripts not under consideration elsewhere and publications for review should be sent to the Editor. Accepted manuscripts will be published as soon as possible, however publication in a specific issue cannot be guaranteed. Include an SASE if acknowledgement is desired. Opinions expressed by authors do not necessarily reflect those of the SPMC. Manuscripts should be submitted in WORD format via email ( or by sending memory stick/disk to the editor. Scans should be grayscale or color JPEGs at 300 dpi. Color illustrations may be changed to grayscale at the discretion of the editor. Do not send items of value. Manuscripts are submitted with copyright release of the author to the Editor for duplication and printing as needed. ADVERTISING All advertising on space available basis. Copy/correspondence should be sent to editor. All advertising is payable in advance. All ads are accepted on a “good faith” basis. Terms are “Until Forbid.” Ads are Run of Press (ROP) unless accepted on a premium contract basis. Limited premium space/rates available. To keep rates to a minimum, all advertising must be prepaid according to the schedule below. In exceptional cases where special artwork, or additional production is required, the advertiser will be notified and billed accordingly. Rates are not commissionable; proofs are not supplied. SPMC does not endorse any company, dealer or auction house. Advertising Deadline: Subject to space availability, copy must received by the editor no later than the first day of the month preceding the cover date of the issue (i.e. Feb. 1 for the March/April issue). Camera ready art or electronic ads in pdf format are required. ADVERTISING RATES may be vertical or horizontal in format. Single-column width, 20 picas. Except covers, page position may be requested, but is not guaranteed. All screen should be 150 line or 300 dpi. Advertising copy shall be restricted to paper currency, allied numismatic material, publications and related accessories. The SPMC does not guarantee advertisements, but accepts copy in good faith, reserving the right to reject objectionable or inappropriate material or edit copy. The SPMC assumes no financial responsibility for typographical errors in ads, but agrees to reprint that portion of an ad in which a typographical error occurs upon prompt notification. Paper Money * Nov/Dec 2014 * Whole No. 294 PAPER MONEY Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol.. LIII, No. 6 Whole No. 294 Nov./Dec. 2014 ISSN 0031-1162 Benny Bolin, Editor Holiday Currency Gift Cards-A Narrative Mark Anderson & Len Glazer ............................ ... 387 The Paper Column--The Birth of Star Notes Peter Huntoon & Lee Lofthus ............................ ... 400 Treasury Department Rectangles on 2nd Issue Fractional Richard Melamed .............................................. ... 412 Uncoupled—Joe Boling & Fred Schwann.................... .... 417 Zimbabwe’s Plunge Into Monetary Madness Carlson Chambliss ............................................ ... 422 An Update on Unlisted Sterling, AL Notes Bill Gunther .......................................................... 430 George McGovern’s Promissory Note Loren Gatch .......................................................... 432 Small Notes—No $5 S.C. I-A or J-A Block Mules Jamie Yakes ......................................................... 436 Obsolete Corner—Wow, What a Sheet Robert Gill……………………………………………………….438 Johnathan Bliss & The Greenville (AL) Insurance Co. Bill Gunther ........................................................... 440 Chump Change—Loren Gatch ....................................... 452 President’s Column—Pierre Fricke ................................... 453 Membership Report—Frank Clark .................................... 454 Editor Sez—Benny Bolin .................................................. 455 Money Mart ........................................................................... 454 385 Space 1 Time 3 Times 6 Times Full color covers $1500 $2600 $4900 B&W covers 500 1400 2500 Full page color 500 1500 3000 Full page B&W 360 1000 1800 Half page B&W 180 500 900 Quarter page B&W 90 250 450 Eighth page B&W Requirements: Ful 45 l page; 125 42X57 picas; 225 half-page Society of Paper Money Collectors The Society of Paper Money Collectors was organized in 1961 and incorporated in 1964 as a non-profit organization under the laws of the District of Columbia. It is affiliated with the ANA. The Annual Meeting of the SPMC is held in June at the International Paper Money Show in Memphis, TN. Information about the SPMC, including the by-laws and activities can be found at our website, .The SPMC does not does not endorse any dealer, company or auction house. MEMBERSHIP—REGULAR and LIFE. Applicants must be at least 18 years of age and of good moral character. Members of the ANA or other recognized numismatic societies are eligible for membership. Other applicants should be sponsored by an SPMC member or provide suitable references. MEMBERSHIP—JUNIOR. Applicants for Junior membership must be from 12 to 17 years of age and of good moral character. Their application must be signed by a parent or guardian. Junior membership numbers will be preceded by the letter “j” which will be removed upon notification to the secretary that the member has reached 18 years of age. Junior members are not eligible to hold office or vote. DUES—Annual dues are $39. Dues for members in Canada and Mexico are $45. Dues for members in all other countries are $60. Life membership—payable in installments within one year is $800 for U.S.; $900 for Canada and Mexico and $1000 for all other countries. The Society no longer issues annual membership cards, but paid up members may request one from the membership director with an SASE. Memberships for all members who joined the Society prior to January 2010 are on a calendar year basis with renewals due each December. Memberships for those who joined since January 2010 are on an annual basis beginning and ending the month joined. All renewals are due before the expiration date which can be found on the label of Paper Money. Renewals may be done via the Society website or by check/money order sent to the secretary. Officers and Appointees ELECTED OFFICERS: PRESIDENT--Pierre Fricke, Box 1094, Sudbury, MA 01776 VICE-PRESIDENT--Shawn Hewitt, P.O. Box 580731, Minneapolis, MN 55458-0731 SECRETARY--Benny Bolin, 101-C North Greenville Ave. #425, Allen, TX 75002 TREASURER --Bob Moon, 104 Chipping Court, Greenwood, SC 29649 BOARD OF GOVERNORS: Mark Anderson, 115 Congress St., Brooklyn, NY 11201 Jeff Brueggeman, 1032 Lower Brow Rd., Signal Mountain, TN Gary J. Dobbins, 10308 Vistadale Dr., Dallas, TX 75238 Pierre Fricke, Box 1094, Sudbury, MA 01776 Shawn Hewitt, P.O. Box 580731, Minneapolis, MN 55458-0731 Kathy Lawrence, 5815 Clendenin Ave., Dallas, TX 75228 Scott Lindquist, Box 2175, Minot, ND 58702 Michael B. Scacci, 216-10th Ave., Fort Dodge, IA 50501-2425 Robert Vandevender, P.O. Box 1505, Jupiter, FL 33468-1505 Wendell A. Wolka, P.O. Box 1211, Greenwood, IN 46142 Vacant Vacant Vacant APPOINTEES: PUBLISHER-EDITOR-----Benny Bolin, 101-C N. Greenville Ave #425, Allen, TX 75002 EDITOR EMERITUS--Fred Reed, III ADVERTISING MANAGER--Wendell A. Wolka, Box 1211 Greenwood, IN 46142 LEGAL COUNSEL--Robert J. Galiette, 3 Teal Ln., Essex, CT 06426 LIBRARIAN--Jeff Brueggeman, 711 Signal Mountain Rd. # 197, Chattanooga, TN 37405 MEMBERSHIP DIRECTOR--Frank Clark, P.O. Box 117060, Carrollton, TX, 75011-7060 IMMEDIATE PAST PRESIDENT- - M ark Anderson, 115 Congress St., Brooklyn, NY 11201 WISMER BOOK PROJECT COORDINATOR--Pierre Fricke, Box 1094, Sudbury, MA 01776 REGIONAL MEETING COORDINATOR--Judith Murphy, Box 24056, Winston-Salem, NC 27114 BUYING AND SELLING CSA and Obsolete Notes CSA Bonds, Stocks & Financial Items Auction Representation 60-Page Catalog for $5.00 Refundable with Order ANA-LM SCNA PCDA CHARTER MBR HUGH SHULL P.O. Box 2522, Lexington, SC 29071 PH: (803) 996-3660 FAX: (803) 996-4885 SPMC LM 6 BRNA FUN Paper Money * Nov/Dec 2014 * Whole No. 294 386 Holiday Currency Gift Cards - A Narrative by Len Glazer and Mark Anderson The earliest known form of written holiday greeting was to hand write wishes on paper  and mail them out as an annual holiday letter. The custom of sending greetings by way of mass‐ produced Christmas cards did not arrive until 1843, when Sir Henry Cole, a British civil servant,  started  wondering  how  the  Post  Office  could  be more meaningfully  used  by  all  classes  of  people. He had a brainstorm, and hired a  local artist,  John Callcott Horsley, who created  the  first commercial Christmas card  [see  fig. 1, below]. Estimates of how many were printed vary  from 1,000 to 2,000 examples, but only 7 examples are known to exist today.   Holiday  season  cards  began  appearing  in  the  United  States  in  the  late  1840’s,  but  because  they were piecework  efforts,  they were  costly  to produce  and  relatively expensive.  However,  they were  prevalent  enough  that  in  the  early  1870’s  there  appeared  a  series  of  newspaper articles complaining that the  large quantity of mailed Christmas cards was causing  slowed delivery of what  they  referred  to as “legitimate correspondence.” And while  in 1873,  apparently bowing  to  this pressure,  the New York Times  ran an ad  in  their personals column  apologizing for not sending Christmas cards that year, the popularity of the custom of mailing  holiday  cards  only  increased.  By  1900  virtually  all  families were  sending  and  receiving  large  quantities of enveloped cards.  Feeding  the  popularity  was  significantly  improved  affordability.  In  the  late  1860’s,  Breslau‐born American printer  Louis Prang, often  referred  to as  “the  father of  the American  Christmas  card,”  started mass  producing  cards which  featured  flowers,  plants  and  children.  While  these visual were unrelated  to holiday  themes,  the  introduction of modern design and  printing techniques produced attractive and affordable cards, and they proved quite popular. In  1873, Prang produced holiday‐themed cards for export to England, where holiday cards were a  well‐established and popular tradition. In 1874, he   began producing holiday themed cards for  the American market, and by 1881 L. Prang and Company was producing more than 5 million  Christmas cards each year. Over time, these cards began to feature many of the images we see  today,  such  as  snow  scenes,  fir  trees,  glowing  fire‐places  and  children  enjoying  toys.  These  creations  proved  enormously  popular,  and  increasingly  elaborate  die  cut  cards,  along  with  “pop‐up” and multilayered cards became the fashion in the 1880’s and 1890’s. In the early part  of the 20th century, enveloped Christmas cards went out of fashion and nearly disappeared.    Fig. 1 The first Christmas card. Paper Money * Nov/Dec 2014 * Whole No. 294 387   This was due to the  fact that by the early 20th century, die cut,  fringed, ribboned, and  elaborately enveloped  cards had given way  to  the newcomer on  the  scene,  the holiday post  card. Some producers,  such as  the children’s  illustrator Kate Greenaway, became  famous  for  their cards, as did Frances Brundage and Ellen Clapsaddle [figure 2, below].     While post cards proved extremely popular in their time, the enveloped Christmas card  began making its return around the time of the first World War, and by the 1920’s had virtually  replaced the Christmas post card. And, exactly when is lost to history, but somewhere between  1905 and 1915 someone had the  idea of enclosing small gifts of money, generally to children,  with their Christmas cards.                            Shortly  after  this  idea  started  taking  off,  the  commercial  producers  of  holiday  cards  began producing cards which were specifically designed and engineered to hold holiday gifts of  money, principally coins [Figure 4].     Figure  2. An  example  of  the Holiday  post  card, with art by Ellen Clapsaddle.  Figure  3:  Although  no  manufacturer  is  indicated,  this  holiday season card clearly dates to the 1880’s, and is by  far  the  earliest  piece  known  to  the  authors.  Of  heavy  cardboard, with  a  cloth  fringe,  and  inscribed  simply  “A  Happy New  Year,”  the  card  is  frosted  to  give  the  snow  scene highly realistic reflectivity. The  lower corner has a  purpose‐made envelope, which  could have held a $2.50  or $5.00 gold piece. It is illustrated with a $5.00 Liberty.  Paper Money * Nov/Dec 2014 * Whole No. 294 388                     Even  in  these  earliest  days  of  the  concept,  when  cards  designed  to  hold  coins  far  outnumbered  currency  cards,  the  implied monetary  gifts  were  significant,  as  several  cards  designed to hold twenty dollar gold pieces have survived [see Figures 5 & 6, below].                                                                Figure  4.  Coin  card.  Intriguing,  sturdy  card  of  unknown  origin,  featuring  a  window  sash  which  rises  to  reveal  a  $2.50  gold  piece.  Though  the  coin  is  dated  1900,  the  card  appears  to  be  of  1920’s  vintage.  Almost  certainly  manufactured  in  the  other  three  denominations of the time [$5, $10, and $20].    Figure 5. Style of this well‐made Dennison product  dates  it  to  the  mid  1920’s.  Santa  heads  down  snow draped  chimney  carrying pack  stuffed with  toys.  The  uppermost  toy  is  a  small  dog,  which,  when  pulled  upwards,  rises  to  reveal  a  U.S.  twenty dollar gold piece.  Figure  6.  No  manufacturer  is  indicated on this die cut 1920’s coin  gift  card.  Santa  on  cover  holds  unwrapped  toys  and  a  holiday  wreath;  cover  opens  to  reveal  a  1924  twenty  dollar  gold  piece  centered in a holly wreath and toys.  The  card  is  hand  inscribed  “To  Mother from Daddy, Xmas, 1924.” Paper Money * Nov/Dec 2014 * Whole No. 294 389 In the post WWI era, currency cards began to overtake coin cards as the popular norm,  and coin cards receded in popularity. And as is obvious, a few coin cards are displayed here, but  as  the  titles of  this publication and  this article suggest, paper money  is our common  interest  and that is what we will focus on.  However, the tradition of gifting coins continues to this day, although modern coin cards  hold almost exclusively a dollar’s worth of dimes, and are directed at children  [see Figure 7,  below].                                  However, the heyday of the Christmas money card was in the 1920’s, and design efforts  were focused on intriguing ways in which large size currency could be displayed or mechanically  proffered. While literally hundreds of designs exist in the cards held by collectors today, for the  purposes of this article, we present some of the more  intriguing and attractive designs of the  day.  The charm in many of these cards is the way in which they open to reveal the included gift  of coin or currency … the challenge for the authors is to properly explain or present the fashion  in which they articulate as they open. Where useful, we have provided two illustrations of the  card  in  question  –  the  “before”  and  the  “after.” We  ask  the  reader  to  please  use  her/his  imagination in visualizing the experience of opening the cards in person.          Figure 7. A more modern [World War II  or  shortly  thereafter]  product,  manufactured  by  Whitman  [likely  Racine, WI at the time] long associated  with  numismatics.  Cover,  displaying  Santa striking a large bass drum, opens  to  reveal  ten marching  Santas  [Santa  Claus’s  Rag  Dime  Band].  Each  dime  represents a drum head.  Figure  8.  From  the  late  ‘teens,  by  unknown  manufacturer,  but  made  in  USA.  Incredibly  charming  card,  specifically  manufactured  to  display  the  back  of  1917  one  dollar  legal  tender  [“sawhorse  back”],  which  when  properly  placed  inside  the  die  cut  gives  the  appearance  of  a  decorative candle. Poem at left reads:  “A  steel  engraving  is  tucked  inside  To add to your collection  Or  you  can  exchange  it  –  if  you  wish –  And make your own selection.”  Paper Money * Nov/Dec 2014 * Whole No. 294 390                                                       Figure  9.  Late  ‘teens,  unknown  manufacturer,  a  Christmas bonus envelope from the Firestone Tire  and Rubber Company, designed and manufactured  to contain an example of the first Series of Federal  Reserve  Bank  Notes  with  portraits  at  left.  This  particular envelope contains a circulated Cleveland  district  ace.  Envelope was  closed  using  1919  Red  Cross tuberculosis seals.  Figure  11.  Circa  1920.  Unknown  manufacturer,  but  envelope  embossing  indicates “Made for D. Brown and Company,” Coytesville,  NJ. Envelope flap printed “Roseville State Savings Bank, Chicago, ILL.”   Holly  wreath  encircles  cutout  for  large  “2”  from  reverse  of  the  contained $2 1917 Legal Tender [Fr. 59].  Figure 10. Post World War  I  to mid‐1920’s vintage. Of unknown  manufacture,  but  produced  for  the  Atlantic  National  Bank  of  Boston.  Contains  a  $10  1902  red  seal  National  Bank  note,  matching the card’s issuer.  Paper Money * Nov/Dec 2014 * Whole No. 294 391       Figure 12. A highly unusual 1920’s tri‐folded die cut card without any indication as to maker or  origin. In step 1, Santa first “unfolds” his coat and in Step 2, his vest, to reveal a gift of a 1914 $1  Federal Reserve Bank Note.  Figure  13.  Circa  1925, maker  unknown,  labeled “Made in Saxony.”   Originally purchased containing a Fr. 91.  Figure  14.  From  the mid  1920’s  and manufactured  by Rust  Craft  of  Boston, MA. Printed inside the card is a mock up bill, marked “Insert  bill here.” Card acquired empty; now contains a 1922 ten dollar gold  certificate [Fr. 1173].  Paper Money * Nov/Dec 2014 * Whole No. 294 392                                                               Figure  15.  Mid‐1920s,  manufacturer  unknown,  this  card  was  specifically  manufactured  to  hold  a  series  1907  or  1922  ten  dollar  gold  certificate,  positioned  so  that  it  appears  to  be  the  roaring fire  in the  illustrated hearth. The  illustrated example contains a Fr. 1173.  Figure  16.  Circa  1925,  maker  unknown,  the  horizontally  formatted  version  of  the  previous  “fireplace card,” although no maker  is  indicated, the  card  is  marked  “Made  in  U.S.A.,”  This  and  the  preceding  card  are  quite  apparently  from  two  different manufacturers; which  is  the  “knock‐off”  is  far from clear. Also contains a Fr. 1173.  Figure 17. From the late 1920’s, manufactured by Gibson of Cincinnati [spelled “Cinti”],                                containing a 1923 $1 Silver Certificate, Fr. 237    Paper Money * Nov/Dec 2014 * Whole No. 294 393       Over time,  innovative graphic designers took advantage of the act of opening the card  to  create  increasingly  clever manners  in which  the money was held, displayed or presented.  While generally Santa did the “giving,” there were exceptions:                                                           Figure  18.  Late  ‘teens  to  mid‐ 1920s,  unknown  maker, contains a  1914  $5  Federal  Reserve Note.    Figure  19.  Early  1920’s,  maker  unknown,  wreath  acts  as  porthole  framing  back  vignette  of  “Landing  of  the  Pilgrims”  on  the  contained  1914  Federal  Reserve Note.    Figure  20.  Mid‐teens  to  1920’s  era  product.  Of  no  known  manufacture. This  “pop‐up”  card  was  given  to  Earl  and Kalilla. As  card  opens,  Santa’s  arm  lifts  to  “hand” the recipient a $100 Blue  Seal  Federal  Reserve  Note,  quarterfolded.  Figure  21.  Mid‐1920’s,  manufacturer  unknown,  magic  wallet  style,  only  example  of  this  format  seen  by  author,  with  the  “magically  switching”  ribbons,  contains Fr. 91.    Paper Money * Nov/Dec 2014 * Whole No. 294 394 Figure  22. A  “pop‐up”  card  of  unknown  origin,  given  to  Sara  from  Edith  in  December,  1922.  Santa’s  message  is  “I  have  something  in  my  pocket  for  _________.” When opened,  Santa’s  arm  springs  forward  and  proffers  a  folded  large size note, in this case a Kansas City  $5 1914 Federal Reserve Note.  Most money cards are of unknown manufacture; those that are marked are dominated  by  the  Dennison  Company,  which  survives  to  this  day  as  part  of  the  Avery  Dennison  Corporation.  Aaron Dennison  began  the  company  in  1844,  originally  as  a  jewelry  company.  When he moved the company back to his hometown of Brunswick, Maine, his father Andrew,  along with his  sisters began making paper boxes  to hold  the  jewelry. Eventually  the  jewelry  aspect of  their enterprise  faded, but  the group  continued as makers of  cardboard boxes. By  1878, the company had a large box making facility in Roxbury, Massachusetts and incorporated  as Dennison Manufacturing.  Early  in  the  20th  century  they branched out  into manufacturing  wrapping paper and holiday cards. Some unknown individual within their holiday card division  must have had a fondness for clever coin and currency gift cards, as fully half of the surviving  cards of that nature are marked Dennison.                 Figure  23.  From  the  late  ‘teens, manufactured  by  Dennison U.S.A. Santa’s coat swings open to reveal  note tucked in his vest pocket. Card acquired with a  ten  dollar  1902  Blue  Seal  National  Bank  note  [Chicago].  Figure 24. Mid‐teens to 1920’s era  product. This Dennison card opens  to  reveal  a  large  size  $1  Boston  Federal Reserve bank Note, folded  into  eighths  and  tucked  into  Santa’s bright green vest.  Paper Money * Nov/Dec 2014 * Whole No. 294 395                   Figure  25.  Likely  from  the  1920’s.  Dennison.  Spray of Holly on  front opens  to  reveal  “Merry  Christmas” in interior, and holding tab.  Figure 26. Circa mid‐1920’s. Dennison product. Santa holds “Merry Christmas”  envelope  in  right  upraised  hand.  Red  portions  of  Santa’s  suit  die  cut  and  removed  to allow green details of Fr. 237  to show  through. While purchased  with this note inside, the author is curious as to what Dennison’s design group  desired to achieve with this approach.  Figure  27.  Hand  dated  December  of  1925.  Manufactured  by  Dennison.  Santa  on  cover  surrounded  by  poinsettias  opens  to  reveal  a  small  cluster  of  blooms  and  a  “ribbon”  inscribed  Season’s  Greetings.  When  obtained  the  card  contained  a  good  luck  bill  from  the  National  Bank  of  Happy Times; apparently  the original  recipient [“Rena”] removed and used  the  actual  currency,  leaving  this  sample note in the card.  Paper Money * Nov/Dec 2014 * Whole No. 294 396   As will not surprise, the card makers managed the transition to small size currency with  understandable alacrity. Adjusted product was not only available  for  the Christmas after  the  introduction of the small size currency in July of 1929,  but mock small size placeholders inserts  cut to the exact size of the new currency were included in the card. A typical specimen, green  on one side, orange on the reverse, provided any client with any doubts the comfort of knowing  they were installing their gift in the card properly. The tradition of gifting currency continues to  this day, albeit in more subdued fashion than the examples which follow:                                                                  Figure  28. Produced  in  1928  or  1929,  by unknown  manufacturer. When purchased, this card contained  the $2 1928 Legal Tender Fr.   1501  illustrated, and  below  it  the original  small  size placeholder  labeled  “Replace with new size currency.”  Figure  29.  Post‐1928,  likely  early  1930’s.  Unknown  manufacturer.    Intended for small size note. Santa holds toy  sack decorated with wreath  from which emerges a 1928 $5  Legal Tender Note [Fr. 1525].    Figure  30.  Early  1930’s. Dennison.  Young  girl  in  Santa  apparel  makes deposit at Merry Christmas Bank, “holding” a small size  note  quarterfolded  under  her  left  arm.  Acquired  empty,  the  card now holds a 1928 $2 Legal Tender issue.    Paper Money * Nov/Dec 2014 * Whole No. 294 397                                                                 Figure 31. Apparently of 1930’s era; manufactured by the P. F.  Volland Company of  Joliet,  Illinois. This charming, simple card  illustrates  a  young  lady  with  a  banknote  tucked  into  an  upended  umbrella with  a  duck  handle.  Featuring  a  1935A  $1  Silver Certificate.    Figure  32.  From  circa  1935.  Product  of  the Dennison Company.  Santa labors under a mountain of wrapped gifts, one of which is a  cleverly camouflaged $2 1928 Legal Tender note  folded small to  blend with packages.    Figure  33.  A  simple  but  charming  late  1930’s  die  cut  card  of  unknown manufacture.  It  holds  a  1934  $5  silver  certificate, with  Lincoln’s portrait peering through a porthole.    Paper Money * Nov/Dec 2014 * Whole No. 294 398                          Interestingly, the brand name most commonly associated with Christmas cards,  indeed  greeting and holiday cards of every kind,  is Hallmark, which was begun  in 1910  in Kansas City,  Missouri  by  Joyce  Clyde  [“J.C”]  Hall  and  his  brother  Rollie  as  a  postcard  printing  and  manufacturing company. Called at  the  time Hall Brothers, on  January 11th 1915 a  fire utterly  destroyed  their office  and  inventory.  They  salvaged nothing but  their office  safe  and  set up  shop again under their new name …. Hallmark. The aforementioned decline in holiday postcard  popularity coincided with  the  fire,  resulting  in  their decision  to print and produce enveloped  greeting cards. Despite their domination of the greeting card business over the last 100 years, if  they produced any early money cards these are unknown to this collector and author.  This collector’s interest began nearly 50 years ago; in those days these cards were a rare  find in antique shops, flea markets and coin shows. A serious collector [read: ‘addict”] would be  lucky to add one or two cards to his/her collection per year. The appearance of eBay about 15  years ago totally changed the market, and although charming early cards are still hard to find,  acquisitions have picked up to the point where a small warehouse will soon be in order. As an  aside and unsurprisingly,  the  cards  rarely  show up with period  currency  in  them. As may be  surmised  from  the  above,  one  of  the  intriguing  aspects  of  this  collection  is  the  process  of  discovering the intended or “right” note for the cards that arrived in the collection empty.   With that, we say, “Merry Christmas to All and to All, Happy Collecting.”  Figure 34. Two similar examples of  later product, circa  1940,  both  lacking  any  manufacture  identification.  Currently  contain  a  1928  $2  Legal  Tender  note,  and  1934 $5 Silver Certificate, respectively. The book titles,  as printed on the “spines,” are   “The  Lives  of  the  Presidents”  and  “Famous Men.”  Figure  35.  1940s  product.  Imprinted  “Volland  Joliet, U.S.A.”  Snowman  on  cover  opens  to  reveal  [apparently]  a  melting  snowman  holding  a  1928B  $5  Legal Tender Note.  Paper Money * Nov/Dec 2014 * Whole No. 294 399 The Birth of Star Notes The Back Story by Peter Huntoon and Lee Lofthus Figure 1. The acquisition by the BEP of high speed Harris serial numbering, sealing, severing and collating machines in 1910 forced creation of star notes because their use eliminated a bottleneck during the last inspection that would have resulted if defectives had to be exchanged out with make-up replacement notes printed on the spot. Photo courtesy of Heritage Auction Archives. The Department of the Treasury transferred responsibility for sealing and separating type notes from the Treasurer’s office to the Bureau of Engraving and Printing in 1910. On its face, this transfer appeared to be a rather benign adjustment in how to get a routine job done more efficiently. Quite to the contrary, what occurred was an epic bureaucratic turf battle between two organizations within the Treasury - the Treasurer's office and the Bureau of Engraving and Printing - over who would end up with final responsibility for putting the finishing touches on U. S. currency in order to monetize it. The change was prodded on by Congressional committees bent on streamlining the printing process in order to save the taxpayers a lot of money. The outcome involved the transfer of a very large workforce with a substantial operating budget. The Treasurer’s office was diminished, the BEP fattened. This represented a transfer of power and influence in every sense of the word as defined in Washington, DC, culture - a culture that lives and breathes hierarchy and influence! Oddly, star notes owe their origin to this event. Power in Washington, DC There are four types of powerful people in Washington, DC. The top dogs are the elected officials - those select few who garner enough votes to be installed at the very levers of power. Of course, there is a hierarchy among the elected officials based on the relative prestige of the offices they hold that obviously rank downward from President to Senator to Congressmen. Within a given strata, power flows to those with the longest tenure - a measure of their tenacity to convince their voters that they should be there. Paper Money * Nov/Dec 2014 * Whole No. 294 400 Next comes the most senior appointed executive branch officials. These people accrue power by virtue of being handpicked by a president to carry out his mandate. The big guns are cabinet officials who manage sprawling agencies with huge budgets. Their relative prestige is measured in face-time; that is, how much influence they wield with the President based on the time he personally spends with them. A terrific example of a cabinet member who carried enormous clout was Secretary of the Treasury Henry Morgenthau Jr., who not only presided over the largest Treasury up to that point in history, but also was a close personal friend, confidant and policy maker in Franklin D. Roosevelt’s inner circle. Then there are lower ranking non-cabinet officials such as the U. S. Treasurer, Comptroller of the Currency and Director of the Bureau of Engraving and Printing. These appointees derive their power and influence based on the importance of their responsibilities, size of the budgets they control, number of employees they manage, their tenure in office, and their access to their overlords. A prime example was BEP Director Alvin W. Hall, a Presidential appointee who served from 1924 to 1954. By 1954 Hall was the longest serving director in BEP history and the bureau was huge, with a large budget and an untarnished reputation. Mr. Hall did not seek the limelight, but you can be certain that toward the end of his career people listened when he spoke. Finally, when we look at DC hierarchy, we have to take seriously key career agency personnel. They are Civil Service employees whose power usually flows down from the people under whom they serve, the responsibilities they hold, the size of the budgets they control, their longevity in office and their ability to get things done for their superiors. Some of these people are dispensers of Federal largess, something that causes everyone both inside and outside the government who interacts with them to be particular deferential towards them. In 1910, the hierarchy within the Treasury was firmly established and can be measured by the salaries for the various positions. The Secretary of the Treasury made $12,000 per year, the Treasurer $8,000, Comptroller of the Currency $5,000, Director of the Bureau of Engraving and Printing $5,000, Director of the Mint $4,500, Register of the Treasury $4,000 and Superintendent of the National Bank Redemption Agency $3,500 (MacVeagh, 1909). Treasurer’s Office and the BEP So what does a discussion of power and influence have to do with the Treasurer of the United States and the Director of the Bureau of Engraving and Printing? Both are Presidential appointees. The function of the BEP simply is to serve as the printing plant for the Department of the Treasury and to accept contract printing work from other Federal agencies. Clearly, within the hierarchy of Washington, the director takes orders and carries them out. The ideal director is one who gets the job done effectively within a mostly congressionally mandated budget and is expected to do so with an absolute minimum of visibility. Theirs is not to wield influence or make policy outside of their own domain. Their job is not supposed to be controversial. The U. S. Treasurer has an imposing title. The Treasurer is housed in the U. S. Treasury building along with the Secretary of the Treasury. The position has considerably more cachet than that of most bureau directors with the added public visibility of being a signer of U. S. currency. The Treasurer’s position has been in existence since the days of the Continental Congress, initially responsible for raising funds for the Revolutionary War. The Treasurer’s function evolved into responsibility for managing the receipt and disbursement of public funds held on Paper Money * Nov/Dec 2014 * Whole No. 294 401 deposit in the Treasury or other authorized depositories. The heyday for the Treasurer’s office, at least from a U.S. currency standpoint, was from the Civil War through World War II when the Treasurer served as the nation’s banker and custodian of billions of dollars of the nation’s wealth. During this era, Congress, through the National Bank Acts of 1863 and 1864, specifically charged the Treasurer’s office with custody over the bonds purchased by national banks to secure their circulations. Over the years, the Treasurer’s job has been redefined several times, notably in 1921 when Andrew Mellon directed that the Treasurer report to the newly created Under Secretary of the Treasury. Later, the Treasurer’s responsibility as custodian for the bonds securing national bank notes vanished in 1935 with the demise of national bank notes. After WWII, the Treasurer’s main currency issue and redemption responsibilities were ceded to the Federal Reserve Banks. By 1974 the Treasurer was separated completely from the Fiscal Service and its day-to-day cash management and reporting functions. Currently, the Treasurer nominally oversees the BEP, the Mint, Fort Knox and serves as a liaison officer between the Department of the Treasury and the Federal Reserve Board. Our tale focuses on the Treasurer’s job back when the position had major currency responsibilities. Secretary of the Treasury Daniel Manning, an appointee of Democratic President Grover Cleveland, transferred responsibility for sealing U. S. currency from the BEP to the Treasurer’s office in 1885, in an effort to better safeguard the currency. This was no small bone to throw the Treasurer’s direction. It entailed establishment of the Issue Division under the Treasurer, which was comprised of a large book keeping force and a small industrial-scale printing operation that took up much of the basement of the Treasury building. This responsibility vanished in 1910, when the work of sealing Treasury currency was reassigned to the BEP. It represents one of those odd situations where the flow of budget and employees was from the domain of a top Treasury official to a mere bureau. Watch the behavior of the key players as this flow of authority occurs. It didn't happen voluntarily! Sealing Notes There were two kinds of currency in the eyes of the Treasury in 1910. There was Treasury currency in the form of legal tender notes, gold certificates and silver certificates that was the liability of the U. S. Treasury. In contrast there also was bank currency in the form of national bank notes that was the liability of the banks. What constituted a monetized note depended upon which kind of note it was. Legal tender notes, gold certificates and silver certificates were not considered to be monetized until they carried a Treasury seal. In stark contrast, a national bank note could carry a Treasury seal but was not considered monetized until it was signed by the bankers who issued it. This is no small distinction. A national bank note as printed by the BEP carried a Treasury seal, but even so, it was considered by Treasury to be incomplete. Consequently, going into 1910, the BEP was prohibited from printing seals on Treasury currency, but not on bank currency owing to these distinctions. Figure 2. Secretary of the Treasury Daniel Manning ordered in 1885 that the sealing of Treasury currency be carried out by the U. S. Treasurer’s office as a security measure so that the Treasury Department could control the final step in monetizing the notes. Paper Money * Nov/Dec 2014 * Whole No. 294 402 The distinction in 1910 was silly, because the courts already had found that an unsigned national bank note was the liability of the bank of issue and had to be redeemed, so it was money in the eyes of the courts! Congress recognized this reality and considered Treasury’s stance on what the BEP should and should not print on a note to be rather contrived. Sealing to Treasurer’s Office in 1885 The BEP printed the seals on all U. S. currency prior to 1885. This changed abruptly when Democrat Grover Cleveland assumed the Presidency and his appointees took charge of the Treasury; specifically, Secretary of the Treasury Daniel Manning and Treasurer Conrad N. Jordan. Jordan had formulated a plan to reform the Treasury Department as part of Cleveland’s campaign, so upon election Cleveland’s appointee Secretary Manning selected Jordan to serve as Treasurer. Manning (1885, p. 491) wrote The method in which United States notes and gold and silver certificates were issued at the time when the present Treasurer [Conrad N. Jordan] assumed the duties of the office appeared to him to lack the security which is had in every institution where such instruments of credit are issued. In order to remedy this defect, in part, the imprinting of the seal of the Treasury on the newly-printed notes was transferred from the Bureau of Engraving and Printing to this office. The incomplete notes are now received by the Treasurer and completed by the imprint of the seal, then cut and separated under his supervision. An internal memo dated January 27, 1908 to Assistant Secretary Edwards in the Treasurer’s office introduced into a Congressional appropriation hearing in 1908 fleshes out Manning’s decision (House, Jan 28, 1908, p. 518). In 1885, when the control of the Treasury Department passed into the hands of a new political party, the officers who were charged with the responsibility and payment of these notes as obligations of the Government, after very careful and full consideration of the situation, reached the conclusion that it was unsafe to trust the final completion of the notes to the same establishment that manufactured them. They held that inasmuch as the officials of the Bureau of Engraving and Printing were not bonded officers and were only responsible for the delivery of perfect and imperfect notes to balance the blank paper received by them that they should not be authorized to authenticate the notes or convert them into a money obligation of the Government. They held that the final authentication of the notes should be made by the officer who was responsible for the money thus produced - this is, the Treasurer of the United States. They also held that there was a danger in transporting the completed notes through the streets from the Bureau to the Department. The central issue was who should have the power to monetize Treasury currency. Obviously Treasurer Jordan wanted to reserve that authority to himself inside the Treasury building. Two seemingly gratuitous secondary issues were raised to bolster the argument, probably because they could be more easily understood by the public than the subtle concept of monetizing a note. First, that there was a risk of theft of the completed currency as it was being Paper Money * Nov/Dec 2014 * Whole No. 294 403 transported between the BEP and the Treasurer’s office, and second, the Director of the Bureau of Engraving and Printing was not a bonded official. Figure 3. One justification used by Secretary Manning for moving the sealing operation to the Treasurer’s office was that the transports carrying finished currency between the BEP and Treasury building were vulnerable to theft, so he did not want monetized notes in those transports. Library of Congress photo. Edward O. Graves, Director of the BEP in 1885, wrote the following in his annual report (Graves, 1885, p. 307-308): Since the close of the fiscal year an important change has taken place in the method of finishing United States notes. A committee of officers of the Department was directed by the Secretary of the Treasury, on May 29, to devise and recommend to him a plan for imprinting the seals upon United States notes, and gold and silver certificates, and for separating the same, under the direction and supervision of the Treasurer of the United States. The committee, in its report, submitted the following propositions: 1. That public policy requires that there should not only be absolute security against fraud and over issue in the engraving and printing of the public securities, but that the public should be assured in some conclusive way that such security exists. 2. That such security can best be attained by intrusting the final authentication of the public securities to other control than that of the mechanical establishment by which they are executed. Paper Money * Nov/Dec 2014 * Whole No. 294 404 3. That this object may be accomplished with reference to United States notes and certificates by intrusting to the Treasurer of the United States the duty of affixing the seal of the United States thereon. 4. That it is indispensable, in order to secure the full assurance of security at which this plan aims, that the imprint of the seal should not be made in the building where the securities are executed, but in the Treasury building, under the direct supervision of the Treasurer of the United States. 5. That, having examined the question, we believe that no legal obstacle exists to the transfer to the office of the Treasurer of the United States of a sufficient number of operatives and machines from the Bureau of Engraving and Printing to perform this duty, and to charging such salaries and other expenses connected therewith to the appropriation for "labor and expenses of engraving and printing." 6. That the notes and certificates complete, except as to the imprinting of the seal thereon and the separation thereof, should be delivered by the Bureau of Engraving and Printing to the Treasurer of the United States, and that the responsibility of the Bureau should end and that of the Treasurer begin upon such delivery. 7. That, in order to fully fix the responsibility of the Treasurer of the United States, the notes and certificates should be taken up in the cash account of his office immediately on the imprinting of the seal thereon. This report having been approved by the Secretary, steps were at once taken for the transfer to the office of the Treasurer of the United States of the presses, machinery, and operatives required to carry its recommendations into effect. The necessary arrangements were completed on the 16th of July, and on that day the sealing and separating of the notes were begun by the Treasurer's Office, to which they are transferred by this Bureau unsealed and in sheets. This plan has worked to the satisfaction of all parties concerned. It relieves the Bureau of Engraving and Printing of the risk of holding finished notes, and deprives it of the power to produce perfect securities of any kind. Figure 4. Edward O. Graves, Director of the Bureau of Engraving and Printing in 1885, ceded the sealing and separating operations for Treasury currency to the U. S. Treasurer’s office and made arrangements for the transfer of the presses, other required machinery and operatives required to carry out the work in the basement of the Treasury Building. Photo from BEP (2004). Paper Money * Nov/Dec 2014 * Whole No. 294 405 Graves’ gave up a rather modest operation in 1885. Two pressmen, three separators who cut the sheets into individual notes and three sheet feeders were transferred to the Treasurer’s office to seal and separate Treasury currency, along with their budget. New Treasurer Conrad Jordan included the following statement in his letter accompanying his 1887 budget request to Congress (Jordan, Oct 29, 1885). Mr. E. O. Graves, Chief of the Bureau of Engraving and Printing, has expressed the desire to have those employees of his office who are now engaged in sealing and separating United States notes under my supervision transferred to the rolls of this office. I fully concur as to the propriety of such transfer. The work is being done for the Treasurer’s office, and the persons engaged on it should be paid on the Treasurer’s rolls. This was an elegant bureaucratic maneuver. Hiding behind approving Secretary of the Treasury Manning, Jordan took some of Graves' people and part of his budget and claimed it was done at Graves' request. It worked. The sealing and separating of U.S. currency was performed in the Treasurer’s Issue Division for the next 23 years! Congressional Push for Efficiency Beginning in 1908, during the latter part of Theodore Roosevelt’s term as President, strong Republican pressures began to build in Congress to streamline the government agencies and reduce Federal spending. Operations within the Treasury Department were scrutinized from A to Z over the next three years by not only the Congress but also by efficiency consultants hired by Treasury. Currency production was not immune, and the earliest changes were brought about by Congressional pressure rather than from within Treasury. Important for the discussion at hand were budget appropriation hearings held in the House on January 28, 1908, where Treasurer Charles H. Treat and Deputy Assistant Treasurer G. C. Bantz found themselves being grilled by James A. Tawney, Republican from Minnesota. Selected but abridged excerpts pertaining to their testimony concerning the sealing of Treasury currency follow (House, Jan 28, 1908, p. 509-518). Figure 5. View of the storage shelves in the interior of the Treasurer's Reserve Vault, the vault that received the notes after they had been sealed and packaged in the Treasurer’s Issue Division. Library of Congress photo. Paper Money * Nov/Dec 2014 * Whole No. 294 406 The first order of business of the appropriations committee was to ascertain if the authority for sealing the notes by the U. S. Treasurer was a statutory requirement or being carried out as a result of departmental policy. Using an oblique reading of the laws, Treat and Bantz claimed that their separate sealing operation indeed met the intent of the legislation. However, the committee concluded in rather short order that in fact the separation of sealing from the other printing steps was a matter of policy promulgated by Secretary Manning in 1885. Tawney then pressed: “What would be your objection to the work being done in the Bureau of Engraving and Printing, providing it could be done, in the judgment of the committee, at a very great less expense?” Treat equivocated citing the security concerns originally raised by Secretary Manning in 1885. Bantz injected: “There would be no check on the Bureau of Engraving and Printing as to the money in their hands if they put the seal on the notes. If they completed the whole thing the Treasurer [Treat] could never know what amount was really issued. Now, he has that check on the matter. The bills are sent to him and he completes them and knows all about them.” Treat then responded: “If the vans were attacked in transit they [thieves] would get only incomplete money.” Treat: “I talked with Mr. Sullivan [Director of the BEP] about this matter and Mr. Sullivan said, ‘Mr. Treat, I want this work to stay where it is.’ I told him that we were very much pressed for room in the Treasury and as you who have been there know, we are as closely packed as if we were in a sweat shop. Mr. Sullivan said: ‘In the first place, I have not the room here, I could not spare the room, and in the next place it is a check. It relieves me of a great responsibility to know that all these sheets are checked up and you report to me any discrepancy at once, and if we did not have that check, and I had to leave it to my subordinates, I think it would be a very imperfect piece of business, and therefore my experience is that you should keep it there and do the best you can.” Next in the docket was BEP Director Thomas J. Sullivan, a gentleman of 63 years who was a long term accountant with the bureau with a tendency to be deferential to his superiors in Treasury. Sullivan pointed out that currently there were 166 people employed at Treasury to seal, sever and package notes. He went on to say that if new presses were purchased by the BEP that could both number and seal Treasury currency, it would make 30 Figure 6. U. S. Treasurer Charles H. Treat, in office from 1905 to 1910, vigorously resisted ceded the sealing of Treasury currency back the BEP, an action that would greatly diminish the responsibilities of his office. Photo courtesy of (2014). Figure 7. BEP Director Thomas J. Sullivan, deferring to his Treasury Department superiors, resisted Congressional pressure to transfer sealing operations back to the Bureau as a cost-savings measure, in part claiming the Bureau did not have room to house the 166 people employed at Treasury to seal, sever and package the completed notes. Sullivan died in 1908. Photo from BEP (2004). Paper Money * Nov/Dec 2014 * Whole No. 294 407 existing numbering presses obsolete, an apparent waste. He also averred that new presses would increase mutilation rates and produce a lesser quality seal than printed at Treasury. Sullivan died in 1908, and was succeeded by Joseph E. Ralph, a brash confident individual who started as a plate cleaner in the BEP in 1895 and worked his way up. His baptism in the hot seat before the House appropriations committee came on January 26, 1909, when he was questioned by Congressman Walter I. Smith, the Republican representative from Iowa’s 9th District. The following are the main points Ralph made about the seal issue (House, Jan 29, 1909, p. 169-172). Smith: “You have been seeking to devise a system by which this [number and seal the notes] might all be done at one time and the note trimmed?” Ralph: “Yes sir. I have let contracts for three presses to three different firms. The idea was to get competition with the understanding that the press that gave us the greatest number of impressions and did the work in the best practical way would be the press that we would select for doing this work. I have let the contracts for the presses, and I expect in the next sixty days to install them.” A bit later Ralph stated: “I am figuring on doing the sealing. If I do the sealing, I will save you the money appropriated for the sealing in the Treasury, approximately $110,000, and in addition I will save $53,000 in the bureau.” After a bit of back and forth, Ralph continued: “The Treasurer is going to insist upon doing the work. You had this question up two years ago with the director, my predecessor, and with the Treasurer’s office, and they presented to you in concrete form and in cold type that it was not practicable or feasible to do this work. There was not any doubt in my mind that it was feasible, but the Treasurer did not want to let go of that work. He said to this committee, ‘I am a bonded officer, and I am responsible for this work, and it should be under my supervision.’ . . . I have no reason to say that we cannot do it as safely and with as great security as it is done now. We are doing the national currency. We print on an average $250,000,000 every year, and this year we will print $750,000,000 of national currency. We have accounted for every sheet and we have surrendered every sheet to the Comptroller of the Currency, and I don’t think there is any question about the handling and safeguarding of it.” Ralph wanted no ambiguity. “I simply want to call your attention to the fact that there should be some form of legislation, some proviso in the bill, that would say which bureau, the Treasurer's office or the bureau, should do this work when the machinery which will do it is perfected.” Smith fretting the transport safety issue: “Who does the transporting from your bureau to the Treasury Department?” Ralph: “I am responsible until it is delivered into the Treasurer’s hands. We deliver to Figure 8. Confident BEP Director Joseph E. Ralph aggressively moved forward on obtaining presses that could simultaneously number, seal, sever and collate Treasury currency, tipping the scales to the return of the sealing operation to the Bureau in 1910. The new presses required that the final inspection of the currency at the Bureau be on completed notes, not unsealed sheets, so the concept of using star replacement notes that could be inserted rapidly to replace defectives was born. Photo from BEP (2004). Paper Money * Nov/Dec 2014 * Whole No. 294 408 them a load of work containing so many notes of certain denominations, representing a value of so much money, subject to their count, and when we come back in the afternoon they give us a permanent receipt. It is first receipted for subject to their count. We deliver it in the morning and they count by the afternoon, and we deliver again in the latter part of the day and they count that by the end of the day or early next morning, and then we get a final receipt. I have never had a question arise between the Treasurer’s office and the bureau as to the correctness of the count.” Smith: “Have you ever had such a question arise with the Comptroller of the Currency?” Ralph: “No, sir. We had such an instance with the internal revenue office, and I sent a counter over there and found that the discrepancy was on their part. I am very sure that our system of checks is about as correct as human ingenuity can provide in the bureau for safeguarding against such a thing.” Smith, pleased with his witness, let the hammer fall on the Treasurer’s office: “Mr. Courts [a committee staffer] suggests that you furnish the committee with a description of the work, so that we can incorporate it in the bill.” Sealing Goes to the BEP Franklin MacVeagh, the new Secretary of the Treasury under President Howard Taft, reported the following under the heading Efficiency and Economy in his first annual report (MacVeagh, 1910, p. 16). Among the changes in the Treasury Department in Washington is the elimination of the issue division of the Treasurer's office. The double printing of the Government notes, first in the Bureau of Engraving and Printing and again in the Treasury building, has in this way been stopped. Unnecessary countings of these notes have been in consequence cut out. Numerous and expensive counts of the distinctive note paper and the non-distinctive paper used for stamps have been done away with; and all this paper has been removed from the Treasury building to the Bureau of Engraving and Printing where it is used; and the amount of the stock has been reduced to the needs of manufacturing. A businesslike handling of all this paper has been established; and the printing, under the greatly improved methods suggested and carried out by the Director of the Bureau, is a large part of the completed improvement. We have established the cancellation at all of the sub treasuries of the notes sent from them to Washington for redemption; and they are now sent by registered mail as merchandise without value instead of being sent by express as money. Ralph had delivered on his serial, sealing, separating and collating overprinting press, and was in the process of buying 15 of the machines (BEP, 1962, p. 59). The BEP was now delivering completed packages of notes instead of incomplete sheets to the Treasurer. His new Harris presses were high capacity. Paper Money * Nov/Dec 2014 * Whole No. 294 409 An internal Treasury Department Memo dated April 12, 1910 said it all. Mr. Ralph informs me that yesterday that the new machine at the Bureau sealed, numbered, separated and collated 14,000 sheets of notes, or 56,000 notes, in the regular working day of eight hours. The mutilation was one-fifth of one per cent of all operations. He also informs me that the mutilations in the Treasurer’s office for the sealing and separating alone amount to six-tenths of one percent. The Harris rotary presses produced notes, not sheets, so the final BEP inspection was on the notes. The old method of culling misprinted sheets and replacing them with make-up sheets with identical serial numbers posed an insurmountable bottleneck. Make-up sheets printed individually on hand-operated paging machines had to go. Ralph proposed and newly appointed Treasurer Lee McClung accepted the concept of using star notes to replace defectives in order to maintain counts (Ralph, 1910). When sealing went back to BEP, the size of the operation was significantly larger than what the Treasurer inherited in 1885. The Treasurer’s office sent 16 pressman, 42 separators and 22 sheet feeders, along with their budgets, back to the BEP (MacVeagh, 1909, p. 37-38). This reduced the Treasurer’s workforce by approximately 13 percent. The Flow of Power This is a rather atypical story of a transfer of authority - and budget - from a prestigious Treasury office to an underling Treasury bureau. Although internally resisted within the Treasury Department, the real powers in the saga - the elected Congressmen - cajoled and pressured for the Figure 10. The Harris presses were behemoths that serial numbered and sealed the notes, cut them from the sheet and collated them in serial number order. The feed stock for the presses consisted of 4-subject sheets. If the backs and faces had been printed from 8-subject plates, the sheets were cut in half vertically prior to being fed into the presses. Star notes owed their invention to the use of these machines. Paper Money * Nov/Dec 2014 * Whole No. 294 410 change. They were nobly guided by their implicit obligation to better allocate taxpayer dollars. The matter was not settled with the Congressmen until the financial savings reaped from the advent of the Harris machine trumped Treasury’s security concerns over moving the sealing operation back to the BEP. Star notes were born directly out of this chain of events. Two Closing Factoids You now know about make-up replacement and star notes that were used to replace defectives caught by the BEP inspectors, but did you wonder what the Treasurer’s inspectors did when that office created misprints while sealing the sheets between 1885 and 1910? This facet of the replacement tale never has been told in the numismatic literature. The Treasurer’s office simply took regular production sheets delivered from the BEP and substituted them for the ruined sheets. Obviously they had to maintain a set-aside supply of all current sheets for this purpose. Thus the counts in the packs were maintained, but bank tellers with a sharp eye would occasionally find notes with totally out-of-sequence serial numbers mixed in. BEP Director Ralph, who was central to these events, presided over the construction of a new building to house the BEP. Planning for the new building, today’s main Washington plant, began in 1906, construction begun in 1911, and the new building was opened March 19, 1914. References Cited Bureau of Engraving and Printing, 1962, History of the Bureau of Engraving and Printing, 1862-1962: U. S. Government Printing Office, Washington, DC, 199 p. Cortelyou, George, 1908 Estimates of Appropriations Required for the Service of the Fiscal Year Ending June 30, 1910: U. S. Government Printing Office, Washington, DC, Treasury Department chapter, various pages. Graves, Edward O., 1885, Report of the operations of the Bureau of Engraving and Printing: p. 312-313; in, Manning, Daniel, Annual report of the Secretary of the Treasury on the state of the finances for the year 1885, vol. 1: U. S. Government Printing Office, Washington, DC, 745 p. House of Representatives, Jan 28, 1908, Seals on United States notes; in, Appropriation Hearings for 1909: Government Printing Office, Washington, DC, p. 509-518. House of Representatives, Jan 26, 1909, Sealing, numbering and trimming notes; in, Hearings, Sundry Civil Appropriations Bill 1910: Government Printing Office, Washington, DC, p. 169-172. Jordan, Conrad, October 29, 1885, Letter from the U. S. Treasurer to Secretary of the Treasury Daniel Manning, submitted as Appendix E with Estimates of Appropriations for 1887: U. S. Government Printing Office, Washington, DC, p. 264. MacVeagh, Franklin, 1909, Estimates of Appropriations Required for the Service of the Fiscal Year Ending June 30, 1911: U. S. Government Printing Office, Washington, DC, pp. 37-38. MacVeagh, Franklin, 1910, Annual Report of the Secretary of the Treasury on the state of the finances for fiscal year ended June 30, 1910: U. S. Government Printing Office, Washington, DC, 470 p. MacVeagh, Franklin, 1912, Annual Report of the Secretary of the Treasury on the state of the finances for fiscal year ended June 30, 1911: U. S. Government Printing Office, Washington, DC. Manning, Daniel, 1885, Annual report of the Secretary of the Treasury on the state of the finances for the year 1885, vol. 1: U. S. Government Printing Office, Washington, DC, 745 p. Manning, Daniel, 1885, Estimates of Appropriations Required for the Service for the Fiscal Year Ending June 30, 1887: U. S. Government Printing Office, Washington, DC, p. 24. Ralph, Joseph E., April 14, 1910, Letter from BEP Director to U. S. Treasurer Lee McClung pertaining to the transfer of currency sealing and separating machinery from the Treasurer’s office to the BEP: Bureau of Engraving and Printing, Copies of Official and Miscellaneous Letters Sent, vol. 280, p. 275-277, U. S. National Archives, College Park, MD (318:450/79/08, v. 280). Paper Money * Nov/Dec 2014 * Whole No. 294 411 AIA_SPMC Oct_Layout 1 10/14/14 9:42 PM Page 1 TREASURY RECTANGLES ON 2nd ISSUE FRACTIONAL CURRENCY  by Rick Melamed  Unlike coins, or currency  in denominations of $1 or more,  fractional currency was only made  during  a  short window  of  time,  1862‐1876,  and  for  a  singular  purpose  (to  alleviate  the  shortage  of  coinage in the U.S. due to hording by the public).  So these are universally old…134 years or more.  The  fascinating  story  of  fractionals  has  been  painstakingly  researched  over  the  past  few  decades  though  certain aspects are  still unknown.   What we do  know  is  fractionals were  issued  in 5  series, with  the  government  constantly  trying  to  improve  the process  to  thwart  counterfeiters.   The  first  issue was a  simple 2 step process called postage currency.   When counterfeiters easily  faked the  first  issue notes,  the government came up with newer and cleverer ways to thwart the clandestine operators (used in the  2nd  –  5th  issues).   Bronze  overprints were  added,  special  fiber paper was  tried,  the  addition of  color  threads in the notes, treasury seals, more intricate designs, etc.    One of the byproducts of the anti‐counterfeiting measures enacted by the government was the  use of Treasury Rectangles  (on 2nd  issue notes).     With  some digging we are able  to piece  together a  fairly comprehensive explanation of their existence.    In a nutshell, Congress  instructed the Treasury to  come  up with  distinctive  paper  to  deter  the  counterfeiters.    Rather  than  produce  the  special  paper  requested, the Treasury came up with a process that circumvented the Congressional order by stamping  the  sheet with  a  “Treas.  Dpt.”    impression  on  the  edge  of  the  sheet.    Other  research  stated  that  Treasury Rectangles were placed on every  sheet, but  in  the Milt Friedberg’s  “Encyclopedia of United  States Postage & Fractional Currency – 5th Edition 1997”,  it was  reported  that  the Treasury Rectangle  was stamped on approximately every 1000th sheet.   This seems more plausable considering the paucity  of known examples  (less  than 50) and  the  fact  that  there  is only one known complete sheet with  the  Treasury Rectangle.  Friedberg’s narrative is illuminating, stating that the bronzing process used on the 2nd issue ovals  and  reverse  surcharge,  also  gave  the  rectangle  its distinctive  color  (which  explains why  the  Treasury  Rectangle matches  the bronzing on  the 2nd  issue notes).   The Treasury Rectangle was supposed  to be  placed on the outer edge of the sheet; so when the sheet was cut  into  individual notes, the rectangle  would  be  trimmed  away.    In most  cases,  that’s  probably  what  happened.    But  with  any manually  intensive process,  the person(s) applying  the  stamp would  invariably become  careless and  the  stamp  made itself onto the actual note.   A very rare occurrence indeed!  The  following  reference  comes  from  page  29  of  Milt’s  Encyclopedia  –  5th  Edition  1997:   A different attempt to produce a distinctive paper for the bureau was detailed  in the testimony  of Wm. H. Coleman, Assistant Clerk, Paper Department (May 1865 to October 1866) in Document #273  of the 3rd Session of the 40th Congress.   Coleman testified that they hand stamped each sheet of paper  with a rubber stamp reading “Tres Dpt” in a rectangle. His testimony gives no clue to either the success  or  length of  the  experiment.   During  this  same  time period,  the Auditor’s office  took  inventory of all  paper  stocks  in  the various  storage areas of  the Bureau.    It  is postulated  that  the  rubber hand  stamp  reading “Tres Dpt”   was placed on every 1000th sheet as a marker.  In both cases, when the sheets were  eventually printed, the bronzing process bronzed the marker, thus producing another collectible variety  of (the) note.  (Author’s note:  The aforementioned information was only found  in Milt Friedberg’s 5th edition  in 1997 and not  in 1st edition Fractional encyclopedia  (1976)  indicating  that Friedberg came upon  the  information later in his research).  Paper Money * Nov/Dec 2014 * Whole No. 294 412 The  following  text  concerning  Treasury Rectangles  comes  from  the  Stack’s  public  sale of  the  Herman Halpern Collection from March 1993 (note that the text states that the Treasury Rectangle was  printed on every sheet, but Friedberg’s research from a later date – 1997‐ states every 1000th sheet):  “The Second Issue  “Treas. Dpt.” Rectangles are one of the rarest and most interesting varieties  of  the Second  Issue.   When Congress became concerned with counterfeiting and Treasury Department  Security, it issued orders that were to be printed on “distinctive paper.” The Treasury’s experience to that  point (primarily  involving Dr. Gwynn’s paper experiments) were  largely unsatisfactory, and they had by  then returned to regular banknote bond paper.   To satisfy  (or circumvent) the Congressional mandate,  one  lower  level Treasury bureaucrat came up with the  idea of printing a bronze rectangle with “Treas.  Dpt.” inside it on every piece of paper the Treasury had for banknotes, thus making it “Distinctive paper.”  A fudging of the rules perhaps more reminiscent of some recent administrations than early ones, but  it  served the purpose! The rectangle was on the edge of the sheet, and was  intended to be trimmed off,  thus accounting for their rarity today.  Of the four  (4) Second  Issue denominations, only the 50¢  is still unknown with a “Treas. Dpt.”  rectangle.  The 5¢ notes are the rarest, the 10¢ next, and the 25¢ notes easily the most “common” with  perhaps a dozen known.  Two rectangles were in the Halpern Sale:    Lot 799 ‐ 5¢ Fr. 1232 VF to XF with a Treasury Rectangle sold for $220.00  Lot 800 – 10¢ Fr. 1245 in AU with a Treasury Rectangle sold for $575.00.  There  is  additional  information  from  the  Currency  Auction  America’s  auction  of  the  Milt  Freidberg collection  in  January 1996.    It was  reprinted  in  the May 2005 Heritage Auction of  the Tom  O’Mara collection and in the May 2006 Heritage Internet Auction and is reprinted with permission:    Lot  22018  ‐  Fr.  1232  Milton  2R5.1i  5¢  Second  Issue  Treasury  Rectangle  Choice  New.  Treasury Rectangles have been an important item in Fractional Currency collecting ever since they were  first  noticed  by  collectors, which was  shortly  after  the  end  of  the  circulating  period.  There  are  two  different accounts of  the origin of  these  Treasury Rectangles. Milt  Friedberg has  located a document  from the Third Session of the Fortieth Congress, where in testimony a Mr. William Coleman testified that  he and a Mr. Drummer counted the blank banknote paper before  it was printed and stamped  it with a  little stamp consisting of a rectangle with "Treas Dpt.,"  inscribed on  it. This rectangle was stamped on  the corner of the sheet to  indicate that  it had been counted. A second version relies on the research of  Martin Gengerke. That version  is that Congress, having become concerned with counterfeiting, ordered  the  Treasury Department  to  print  notes  on  distinctive  paper.  The  Treasury Department  circumvented  Congress's orders by stamping each sheet:  Treas Dpt   thereby making the regular banknote paper  distinctive,  instead of having to go back to the drawing board and print Experimental notes on various  forms of paper, a process which had already been done, and during which Treasury Department officials  never found a satisfactory substitute for the regular banknote paper. Several different sizes and shapes  of Treasury Department rectangles are known, and  it's possible, perhaps even  likely, that both of these  accounts  are  correct.  In  either  case,  the  rectangle was  at  the  very  edge  (of  the)  sheet,  and  it was  intended  to  be  trimmed  off,  accounting  for  their  extreme  rarity.  The  Five  Cent  denomination  is  the  second scarcest on which to find these Treasury Department bronze rectangles. At the time of  issue of  Milt Friedberg's massive Encyclopedia of Fractional Currency, no Five Cent Treasury Rectangle had been  discovered. Currently,  there are  about  fifteen 25¢ notes,  ten 10¢ notes,  six 5¢ notes  and  to our best  knowledge no 50¢ is known (31 in total).  Paper Money * Nov/Dec 2014 * Whole No. 294 413 Rob Kravitz in his  A Collector's Guide to Postage & Fractional Currency – 2nd Edition states:  A  lot of  the  first  issue notes were  counterfeited. Therefore a  concerned Congress ordered  the  Treasury Department to print notes on distinctive paper.  They had no distinctive paper at the time and  were pressed  for  time  to  start printing  the  second  issue notes. By  taking  regular banknote paper and  imprinting  with  a  rectangular  Treasury  stamp  and  making  it  Treasury  paper,  therefore  making  it  distinctive paper.  The rectangle was at the very end of the sheet and it was intended to be trimmed off  when the sheets were cut, which accounts for its rarity.  These are only found on 2nd issue notes and the  following are the number known:  ‐Fr. 1232 – One full sheet with seal on lower right bottom corner (ex. Rockholt/Milt Friedberg)  ‐Fr. 1232 5¢ notes – 6 known  ‐Fr. 1244 10¢ notes – 10 known  ‐Fr. 1283 25¢ notes – 15 known  ‐Fr. 1316 50¢ notes – none known  (Author’s note):  As time moves forward and the amount of notes with Treasury Rectangles are codified  and  the  estimated  population  rises.    As  of  early  2014  and  according  to  past  Fractional  Club  (FCCB)  President Mike Marchioni:  “I believe there are about (21) Fr. 1283, (10) Fr. 1232, (8‐10) Fr. 1244 & no 50  cent notes. Most folks believe the 5¢ is rarer than the 10¢, but I’ve owned twice as many of the 5¢s. As  time moves forward, the amount of known notes with Treasury Rectangles has increased.”   Mike  indicated  that  his  estimated  count  of  39‐41  examples  did  not  include  the  (7)  Treasury  Rectangle notes in the John Ford Sale (Stacks Ford Sale XIX; October 1997).  Ford’s holdings contained:  (3) 5¢  FR1232  and  (4) 25¢  FR1283.    The  total estimate  including  Ford’s notes  stands between 46‐48  known examples.  Any serious fractional collector seeks a Treasury Rectangle note for their holdings.  Aside from  their historical significance, they sure are striking.  Any example always adds considerably to their value.   For this article, I’ve selected a few examples for observation.    A Fr. 1232 Graded PCGS40 sold for $1,437.50 on Heritage  in 2008.    It contains 80% of  the  rectangle on the back.    A  second  Fr.  1232  with  a  full Treasury Dept. rectangle  in AU sold for $747.50 on Heritage in 2006.  A  Fr.  1244  with  the  rectangle  on  the  face  grading  PMG45  sold  for  $920  by  Heritage  in  2010.  An  astonishing price clearly  increasing  its  value  by  15  to  20  times, most  likely  because  most  of  the  rectangle is present.   Paper Money * Nov/Dec 2014 * Whole No. 294 414 The FR1283 at left graded VF and contains the rectangle on the face, was  sold by Heritage for $488.75 in April 2006.  This version is unusual since  the ink color is green, all other rectangles researched on the HA site have  a bronze color.  This however, is a case of oxidation since the bronze oval  has also turned green and we know from the research that the Treasury  Rectangle was colored with the same bronzing powder used in the oval.          The  following  three Treasury Rectangle beauties are  from  the  John Ford Sale XIX October 2007  with the price realized.  All three contain the full Treasury Rectangle.    A stunning uncut horizontal strip of (3) FR1245 is AU condition sold by Heritage in May 2005 for  $1,035.00.  Note the Treasury Rectangle on the bottom right corner.    A very lovely uncut horizontal pair of FR1244 with 90% of a Treasury Rectangle in the bottom  right corner of the face that sold for $747.50 in March 2007  Lot 343 – FR1232 –$483.00  Lot 344 – FR1283 –$747.50 Lot 345 – FR1283 – $690.00 Paper Money * Nov/Dec 2014 * Whole No. 294 415 Unfortunately many of the Treasury Rectangles are partials…some  just showing the frame  line.  This FR1283 is typical of most examples with maybe 25% of the rectangle.  This specific example was  unsold at 2 Heritage auctions but is valued at ~$500.  There  is  also  an  interesting  uncut  strip  of  (4)  FR1232,  from  a  private  collection,  displaying  a  partial Treasury Rectangle on the upper left reverse as well as one known example of an uncut sheet of  (20) FR1232 from the Currency Auctions of America Milt Friedberg auction in January 1997.   It sold for  $770.00  It should be reiterated that there are no known 2nd  issue, 50¢ fractionals displaying a Treasury  Rectangle.  The population is way too small to hypothesize a reason.  For years it was thought that no 5¢  existed, but that has changed so perhaps there is a 50¢ version waiting to be discovered.  In conclusion, 2nd issue fractionals with the Treasury Rectangle are worthy of serious discussions.  It  is  significant  that  Congress  and  the  Treasury  Department  took  additional  steps  to  safeguard  the  country’s currency and any piece, even if it contains a partial rectangle, is evidence of action on the part  of the government.  A special must extended to my son – David Melamed, Jerry Fochtman, Benny Bolin, Bob Laub,  Len Glaser, Rob Kravitz and Mike Marchioni for their help and expertise.  Also thanks must be extended  to Stacks/Bowers and Heritage Auction Galleries.  Their Auction Archives are an invaluable research tool  that has contributed so much to fractional research.  SPMC’s Obsolete Database Project The Society has been involved in the cataloging of obsolete paper money and scrip for nearly 50 years. The Board of Governors recently approved an exciting new initiative that will result in an on-line database chronicling known notes and scrip from across the nation. The site will be interactive and allow users to both search for and add new notes. State Experts will oversee each state and virtually all notes will have images available. Governor and committee member Wendell Wolka will provide an overview of the website and its capabilities at the SPMC regional meeting at the FUN show in Orlando in January. Be sure to check the SPMC website for further details. Paper Money * Nov/Dec 2014 * Whole No. 294 416 Lyn Knight Currency Auct ions If you are buying notes... You’ll find a spectacular selection of rare and unusual currency offered for sale in each and every auction presented by Lyn Knight Currency Auctions. Our auctions are conducted throughout the year on a quarterly basis and each auction is supported by a beautiful “grand format” catalog, featuring lavish descriptions and high quality photography of the lots. Annual Catalog Subscription (4 catalogs) $50 Call today to order your subscription! 800-243-5211 If you are selling notes... Lyn Knight Currency Auctions has handled virtually every great United States currency rarity. We can sell all of your notes! Colonial Currency... Obsolete Currency... Fractional Currency... Encased Postage... Confederate Currency... United States Large and Small Size Currency... National Bank Notes... Error Notes... Military Payment Certificates (MPC)... as well as Canadian Bank Notes and scarce Foreign Bank Notes. We offer: Great Commission Rates Cash Advances Expert Cataloging Beautiful Catalogs Call or send your notes today! If your collection warrants, we will be happy to travel to your location and review your notes. 800-243-5211 Mail notes to: Lyn Knight Currency Auctions P.O. Box 7364, Overland Park, KS 66207-0364 We strongly recommend that you send your material via USPS Registered Mail insured for its full value. Prior to mailing material, please make a complete listing, including photocopies of the note(s), for your records. We will acknowledge receipt of your material upon its arrival. If you have a question about currency, call Lyn Knight. He looks forward to assisting you. 800-243-5211 - 913-338-3779 - Fax 913-338-4754 Email: - support@lynknight.c om Whether you’re buying or selling, visit our website: Fr. 379a $1,000 1890 T.N. Grand Watermelon Sold for $1,092,500 Fr. 183c $500 1863 L.T. Sold for $621,000 Fr. 328 $50 1880 S.C. Sold for $287,500 Lyn Knight Currency Auctions Deal with the Leading Auction Company in United States Currency U n c o u p l e d: Paper Money’s Odd Couple More on Banknote Companies Joseph E. Boling Fred Schwan with an addendum from Mark Tomasko Last issue Fred addressed a couple of se‐ curity printers he is interested in; I talked about the printing technologies they used. We embarrassed ourselves by making a blanket statement about the E. A. Wright Bank Note Company’s printing of WWII notes for French colonies under control of the Free French. The statement was “...intaglio printing was not used by this firm for any of its notes.” I was looking at lots in one of the ANA auctions and stopped at a middle‐denomination WWII Martinique note ‐ thinking that it looked very good for a lithographed note. So out comes my 20x glass, always in my pocket, and son‐ of‐a‐gun ‐ the note is intaglio! I bought a high‐grade Martinique five‐ franc note at the Royal Canadian Numismatic Assn. convention in Mississauga the following week. It is also intaglio face and back. So now we need to go back and inspect every E. A. Wright product and update Schwan‐Boling’s descriptions for the next edition. None of this affects my descriptions last issue of the distinctions between litho‐ graphed and letterpress printing. This month we move on to printing from engraved plates and other techniques that result in a printed product that has ink or other deposited mate‐ rial sitting above the surface of the note’s pa‐ per. Intaglio printing, also called recessed printing, and usually referred to simply as “ e n g r a v e d , ” u s e s m e t a l p l a t e s i n w h i c h a BOLING continued on page 420 I have very mixed feelings when my copy of Paper Money arrives. I am always excited to read the news and features that it contains, and of course I am also happy to see our joint column in its final form. The cycle from inspi‐ ration through publication is very like a sea‐ sonal change life cycle. For Joe and me the hardest part is planting the seed—about what shall we write? After that our 100+ years of collecting experience will generally kick in so that there should not be too much difficulty. Still, near the end of the preparation cycle, I usually get tired of the project and have to count on Joe pushing and pushing. He always does a great job of that! You can count on Joe. This time was a little different. We decid‐ ed to go back to the subject of the previous column to clean up a few places where we had gone wrong. That meant that I would write some more about Central Banknote Company, E. A. Wright Bank Note Company & possibly some other bank note companies. The Paper Money issue came in and the clock started to tick, tick, tick. Since we had decided on a topic, I thought that this issue would be easy. From that point it has been an adventure. I had received a wonderful email from Mark Tomasko about the Central Bank‐ note Company. The biggest news was that he had written an in‐depth article on the compa‐ ny for the Bank Note Reporter in 1981. Fur‐ thermore, he quite generously offered to send me a copy. That was an offer that you can be sure I jumped right on. Paper Money * Nov/Dec 2014 * Whole No. 294 417 I was (and still am) excited about the arti‐ cle, but I was mortified that I had missed it. How could I have missed such an important (to me) article? Then two conflicting things happened. I waited and waited and fended off reminders from Joe. Of course he was acting for Benny and the SPMC, and he was correct in pushing, but the prodding still hurt. Every day I picked up the mail, but nothing from Mark. I wanted to proceed, but what to do? I told you that we had decided on a subject and that that is the hardest part. Joe had his part finished, so it would be real hard to make something fit. Finally, I was saved. Sort of. The long awaited package arrived today, October 1st. Mark had NOT let me down. It had been mailed from New York City on September 22nd! I wonder if the Postal Service is going to send me an invoice for storing the pack‐ age? Will the SPMC auditor catch that on my expense report? Enough of the whining. Actually, the wait was worth it! First, Mark sent me actual tear sheets from the January 1998 Bank Note Re‐ porter. This is a great article! Congratulations to Mark and to the Bank Note Reporter for creating and publishing such a great story. It is three full pages replete with many great images. Mark tells the story of Central from the perspectives of Fred R. Esty Jr. and Sr. Mark was able to interview Fred Esty Jr. and his brother Frank about Central Banknote Com‐ pany, founded by Fred Esty Sr. I will pick out some highlights from the article, but if you are interested in the subject at all, you should read the entire piece. Let this serve as a suggestion to Mark and Benny to rerun the article in Paper Money. Mark probably has some new information that could be included to make it even better. Heck, I may have a tidbit or two for Mark. Fred Esty Sr. was born in 1889. By 1910 Fred was working at Columbian Banknote Company in Chicago. In 1919 Fred left Co‐ lumbian and formed Central Banknote Com‐ pany. In the 1920s a Central plant was opened in New York City. July 14, 1926 was a big day in the company’s history. On that day Central was approved by the New York Stock Exchange as a printer of stock certificates to be traded on the exchange. That was a critical endorsement for a security printer. In 1934 Fred “Russ” Esty Jr joined his fa‐ ther at Central. This was the height of the de‐ pression, so prospects were not great. This is the period during which Frank Esty also worked for his father. In the previous article I reported simply that the E. A. Wright Bank Note Company had purchased the Central Banknote Company. That was how E. A. Wright III had reported it to me. Mark has some much more interesting details and commentary on the transaction. Mark reports that in about 1939 Fred Esty Sr. had been working on a merger of Central with Columbian Banknote Company, but that Esty suddenly died. Esty’s partners then asked E. A. Wright II to take over opera‐ tions of Central as managing director. Russ is reported to have been unhappy with the Wright management, and the firm soon was in bankruptcy. Central’s dies, rolls, plates, and other materials found their way into the hands of the Wright company. The tone of this takeover sounds very dif‐ ferent from the outright purchase implied by Wright III. The truth of the matter probably lies somewhere in between. Nonetheless, shares of companies that were Central cus‐ tomers promptly began appearing with the Wright imprint. Some of these had new art, but most used the Central art work. Tomasko goes on to describe further ca‐ reer moves by Russ Esty, culminating in his appointment as president of Security‐ Columbian Banknote Company. Mark even has a newspaper clipping announcing this appointment. Russ died in 1995. Mark has a nice selection of images for his article. Of course he has some Central Bank‐ note Company stock certificates, but what I really like are not products of the company, but artifacts (or photographs of artifacts). The highlights are on page one of the article. The first is a 1926 photograph of a Central Bank‐ note Company armored car with guard and driver, staged on the street at 319 North Al‐ Paper Money * Nov/Dec 2014 * Whole No. 294 418 bany Ave., Chicago—the Central office and plant. This is a great image for bank note col‐ lectors and automobile fans. Pictures of ca.1926 armored cars must be rare (but what do I know?). The next image is of a front window dis‐ play for Greenebaum Sons Investment Com‐ pany. That firm was Central’s biggest custom‐ er in the early years. The title of the exhibit in the window is “How Greenebaum bonds are made.” A steel plate, lithographic stones, specimens, and proofs are displayed in the window. The last photo on the page is of work in‐ side the Central plant. Two wonderful ma‐ chines are shown: a geometric lathe and a transfer press. You certainly do not see pic‐ tures of these being operated very often. The second page of the story has two real‐ ly great artifacts. The first is a letterhead. I have to admit that I collect bank note compa‐ ny letterheads, and I think that I might have a Central letterhead—somewhere. Like a bank note company’s own stock certificates, I have always thought that bank note companies must give special attention to their own sta‐ tionery, so I figure that I should also give spe‐ cial attention to their letterheads and stock certificates. Letterheads often provide good research material. The other item on this page, and the last of Mark’s items that I will discuss, is a really great advertising blotter promoting Central Banknote Company. Mark says that it is the only Central advertising piece that he has seen. I have not seen any others, either. Heck, I had not seen any at all until Mark shared his with us. The blotter states that Central print‐ ed bonds, stock certificates, banknotes, stamps, insurance policies, and checks. Of those, Mark and I have seen only stock certifi‐ cates and bonds. It is unlikely that the firm printed any banknotes, although it is certainly possible that they printed some Depression scrip. I asked Neil Shafer; he told me that he has never seen any such issue. So once again I solicit reports of items and information about Central Banknote Compa‐ ny (and E. A. Wright and other small compa‐ nies). Thank you. Mark Tomasko addendum: I am pleased to see Fred Schwan reviving a little interest in Central Banknote Co. Fred R. (“Russ”) Esty Jr. (the son of the founder of Central) was a friend of mine, and I was fortunate to be able to get some of the Central Banknote story from him. The article, by the way, is “Central Banknote Grew to Prominence with the Estys” in the January 1998 Bank Note Report‐ er. Perhaps the greatest irony regarding Russ Esty and Central Banknote is that while he parted ways with the Wrights in 1940, to go to Columbian Banknote Co., he had not seen the last of the remains of Central. 32 years later, as the president of U.S. Banknote Corp. (formerly Security‐Columbian Banknote), he presided over the purchase of Federated Banknote (from De La Rue). Federated was the successor to Central and E. A. Wright. So what remained of the Central dies and rolls were back under his dominion by 1972. Here is one of the photographs to which Fred Schwan refers in his text: the armored car scene. It is quite amusing because it looks as though they paid a policeman to pose by the armored car, and the man on the right, presumably the driver, looks as though he’s wearing a Western Union or bellhop’s outfit (his cap reads “Messenger”)! Paper Money * Nov/Dec 2014 * Whole No. 294 419 BOLING CONT> design has been carved, impressed, or etched in mirror image to the desired product. Ink is applied to the plate, being careful to insure that ink penetrates the recessed image entire‐ ly, and excess ink is wiped away, leaving only the ink in the recesses. On its face, this seems impossible to do ‐ anyone who has tried to wipe ink from a sur‐ face is going to feel that all of the ink can nev‐ er be wiped up short of using some solvent. But the printing plate is highly polished, and with enough wiping, using a variety of wiping materials, the ink outside the recesses can indeed be removed (remembering that care must be taken to not wipe the ink out of those recesses). Paper or other material is then laid on the plate, great pressure is applied, and the ink in the recesses is transferred to the medium up‐ on which the image is desired. Since the grooves in the plate have depth, and are mostly filled with ink, if the pressure is great enough and the ink sticky enough, most of the ink in the grooves will come away onto the target medium (we will assume paper hence‐ forth). This means that, to the extent that the grooves are emptied and the ink does not smear as the paper is lifted from the plate, the ink will sit on the surface of the paper in ridges corresponding to the valleys that are engraved into the plate. When dried, that ink will be very visible, at magnification, sitting up above the surface of the paper. Figure 1 is a photograph at 20x of a portion of a portrait on a 50 reichsmark note of 1933 (early printing). Figure 2 is the same part of a later printing of that note. The early printings were intaglio; the later printings were lithographed. Recall from last issue that lithography leaves a virtually flat image. These photographs were taken with side lighting that shows clearly the mounding of the ink above the paper on the engraved note, and the lack of that “body” on the lithographed note. There is a little bit of texture on the litho piece, from the roughness of the paper, but nothing like the high relief shown by the ink on the note printed from an engraved plate. High quality engraving is characterized by deep cutting of the printing plate, and high relief on the finished product. Counterfeiters who use intaglio plates generally do not have the patience to create plates of that quality. Intaglio counterfeits can be hard to distin‐ guish from direct‐plate (as distinguished from offset) lithography, because direct‐plate printing can transfer a lot of ink ‐ which can look like shallow intaglio. That’s why it is al‐ ways desirable to have a known original note in hand if one is examining a suspect note that should be intaglio. Not only will you be able to compare the relief presented by the ink in the design, but you will also be able to compare individual lines, distinguishing those of the counterfeit that do not match those of the original. But the first step of your exami‐ nation will be making a determination about what printing technology was used for the note you are inspecting. Intaglio is not the only printing process that leaves ink sitting above the surface of the note. Two others are silkscreen and laser printing. Silk screen printing is a centuries‐old technology from—where else? China. An im‐ age is created as a stencil that is laid on a fine mesh fabric (the “silk” of the process) and ink is pressed through the gaps in the stencil, and through the mesh, onto the medium taking the image. Alternatively, the mesh can be treated so that it is impervious to the ink in areas where printing is not desired, and the stencil is superfluous. Silk screen printing of counterfeits has been widely practiced in Asia and elsewhere for at least seventy years. It is most often used for the multicolored underprints (tints) behind the main plates of Fig. 1 Fig. 2 Paper Money * Nov/Dec 2014 * Whole No. 294 420 bank notes. Typically, on legitimate notes, such tints are lithographed, although they can be printed by any available technology. But silk screen is a slow process (even expensive rotary presses for t‐shirts or sweat‐shirts run at about 400‐500 pieces per hour, way too slow for bank note printers), so silk screen is not used for genuine notes. Because of the volume of ink passed through the mesh, it leaves a significant de‐ posit on the paper. Think of the rubbery feel‐ ing of the printed areas of a screened sweat shirt ‐ if all that ink is on paper, and not em‐ bedded in the weave of a printed shirt, you can imagine that at high magnification it will be fairly prominent—which it is. See figures 3‐5. These are of an Indonesian 400 rupiah note ‐ SCWPM #35. In figure 3 (a genu‐ ine note), all of the elements (three colors) are lithographed, and sit flat on the paper. Figures 4 and 5 are counterfeits from two different producers. The main plate (brown, the arcs at right and con‐ nected elements), are letterpress. The other two colors (the blue and orange tints) are silk screened. Their inks sit up above the plane of the paper. Particularly in figure 5, you can see very high edges on the thin blue lines, similar to the ink ridges we see on the edges of letterpress print‐ ing (such as the brown dots at the lower left of the same photo)—but much higher, with a lot more ink than the letterpress plate. See also figures 6‐8. These are of the Free French overprint on French Somaliland (Djibouti) notes of WWII (SCWPM #12A and following). Figure 6 is of a genuine note ‐ it is letterpress, and the ink ridges along the edges are barely visible. Figures 7 and 8 are photos of a fraudulent overprint applied using the silkscreen process, specifically to bilk collectors. The photos are of the same note, taken with the light striking the overprint from the left (figure 7) and from the top (figure 8). I don’t know if the reproduction in the magazine will show it, but you can see the pattern of the fabric through which the ink was applied ‐ vertical lines in figure 7, and horizontal lines in figure 8. You can also see how much more ink has been applied—at 20x, it appears to be about to poke the view‐ er in the eye. Note that the faker did not get the dimensions quite right—the silkscreened image is somewhat taller than the original. And speaking of ink, I’ve used more than my allotment for this column, so we will have to take up laser printing (and its digital cousin, inkjet) in the next edition. Fig. 3 Fig. 4 Fig. 5 Fig. 6 Fig. 7 Fig. 8 Paper Money * Nov/Dec 2014 * Whole No. 294 421 AUTHENTICATION EXPERT GRADING ENCAPSULATION IMAGING INTEGRITY IMPARTIALITY Independent, expert grading. A collecting environment that benefits the collector. PMG values what our independence brings to the professional certification of US and World currency. To learn more, contact your PMG authorized dealer or visit | 877-PMG-5570 North America | Europe | Asia INDEPENDENCE DAY AT PMG, EVERY DAY IS safer and more transparent trading environment for the collector. removing conflicting interests from the certification process, we can create a Collectibles Group we strictly adhere to the fundamental principle that by comes to grading your notes. As an independent member of the Certified buying and selling currency, assuring their complete impartiality when it and third-party to the market. PMG’s team is prohibited from commercially ne of the great benefits of PMG grading is that we are truly independentO showcased online in the PMG Registry. a free resource on PMG’s website, and all PMG certified currency can be comprehensive population report of notes graded by PMG is available as —notes to date certification and authentication, having graded more than half a million As a result, PMG has become the most trusted name in currency including the Bebee and Harry Bass Jr. collections. A ZIMBABWE’S PLUNGE INTO MONETARY MADNESS by: Carlson R. Chambliss Zimbabwe (formerly Southern Rhodesia) differed from many other African colonies in that it had a sizeable European (very largely British) element in its population whose roots went back to the year 1891 when the British under the leadership of Cecil John Rhodes and his British South Africa Co. firmly planted a grip in this part of central Africa. Six or seven decades later as increasingly many British, French, and Belgian colonies in Africa were granted independence in the late 1950s and early 1960s, the central African colonies of Northern and Southern Rhodesia together with Nyasaland posed somewhat of a problem. Great Britain considered the possibility of an independent Federation of Rhodesia and Nyasaland, but this would have paired impoverished (and overwhelmingly African) Nyasaland with mineral-rich Northern Rhodesia and fairly prosperous (but European-dominated) Southern Rhodesia. In 1964 both the two northern components of this unworkable federation became independent as Malawi and Zambia, respectively. The majority of the European population in Southern Rhodesia refused to accept a scheme that would have left them under majority African control, and UDI (Unilateral Declaration of Independence) was declared by them in November, 1965, with Ian Smith as Prime Minister. Soon (Southern) Rhodesia was to declare itself a republic Great Britain regarded UDI as illegal, but the white Rhodesians did have support from both South Africa and Portugal, which still exercised control over Angola and Mozambique. Despite a lack of diplomatic recognition and having to endure a variety of international trade embargos and other sanctions Rhodesia continued to have a relatively prosperous economy. Prior to UDI in 1965 the Reserve Bank of Rhodesia issued 10/-, £1, and £5 notes that were printed by Bradbury, Wilkinson & Co. in the United Kingdom. These depicted a portrait of Queen Elizabeth II, and their face designs resembled the notes of the by then defunct Bank of Rhodesia and Nyasaland. After UDI the Rhodesian government secured a contract with the venerable German printing firm of Giesecke & Devrient to print a new series of notes. Quantities of notes were printed by this firm, but the British put very strong pressure on the Germans to have them not released. Apparently all of the German-printed notes for Rhodesia were destroyed, and none reached either that country or the numismatic marketplace. After that failure the Rhodesian government turned to local printers, and a lithographed issue that closely resembled the British-printed notes of 1964 was issued in 1966. In 1970 these notes were replaced by $1, $2, $5, and $10 notes of the Republic of Rhodesia with one dollar equal to ten shillings. The Queen’s portrait that appeared on the 1964 and 1966 issues, of course, was replaced by the new coat of arms of this regime. The decade of 1970-80 proved to be increasingly difficult for government of Ian Smith in Rhodesia, but oddly enough, it was able to maintain the integrity of its currency. Between 1964 and 1978 the cost of living index in Rhodesia increased only Paper Money * Nov/Dec 2014 * Whole No. 294 422 by a factor of very nearly 2.0 despite fairly stringent controls on its international trade. This corresponds to an inflation rate of only 5.1% per annum, a real achievement for the regime considering the increasing war expenses that the nation was forced to make. The resistance mounted by many Africans to the Rhodesian regime became increasingly effective, but this was split most notably between the Mashona-dominated ZANU movement of Robert Mugabe and the Matabele-dominated ZAPU movement of Joshua Nkomo. The eventual peace agreement that led to full and internationally recognized independence for Zimbabwe left Robert Mugabe and his faction in full control. Neither the Europeans under Ian Smith nor the Matabele under Joshua Nkomo were very happy about this arrangement, and as things turned out, they had good reason for not being pleased with this outcome. Given the former hostility between Ian Smith and Robert Mugabe, it is amazing that the monetary transition went as smoothly as proved to be the case. Dr. D. C. Krogh, a European, continued as governor of the Reserve Bank of Zimbabwe which took over from the former Reserve Bank of Rhodesia that Dr. Krogh had also headed. The earlier notes of Rhodesia featured a watermark of Cecil John Rhodes, but by 1979 these notes had a watermark of a Zimbabwe bird, an artefact that is associated with the Great Zimbabwe ruins, the large stone fortification and urban center that dates back several centuries and has become symbolic of the nation. This watermark was also continued on the new Zimbabwe notes. The first issue of notes of Zimbabwe were of the $2, $5, $10, and $20 denominations, and they were exchanged at par with the previous Rhodesian dollar notes. Both series were domiciled to Salisbury, but in 1982 the name of the capital city was changed to Harare. In 1983 D. C. Krogh was replaced by K. Moyana, the first African to hold the job of governor of the Reserve Bank. Moyana was replaced by L. L. Tsumba in 1994, and all three of these individuals signed these notes between 1980 and 1994. The notes themselves were well engraved by Thomas De La Rue, and all feature the Chiremba balancing rock formation located near Harare that has been used as a symbol of the Reserve Bank and has appeared on many of its notes. The Zimbabwe note issues of 1980-94 give the appearance of great stability, but actually things were a bit less stable than appearances might suggest. Initially the Zimbabwe dollar was pegged at the value of the Rhodesian dollar or $1.44 in U. S. currency, but by 1994 its value had fallen to about 14 cents in US money. By this time there was also a parallel market rate that offered about nine Zimbabwe dollars to the US dollar. Nonetheless both the coins and the notes remained unchanged for about 15 years. By 1995, however, a new series of banknotes was introduced beginning with notes for $50 and $100. In 1997 the original notes of 1980-94 were replaced by new Paper Money * Nov/Dec 2014 * Whole No. 294 423 and smaller-sized notes for $5, $10, and $20. All of these were still printed by TDLR. I was in Zimbabwe in 1999 to view a total solar eclipse, and one thing that impressed me was how fresh all of the $100 notes were, thus indicating that they had been very recently printed. By 1999 the exchange was officially $55 Z per U. S. dollar, but most transactions were conducted at a parallel rate of about $100 Z per U. S. dollar. Higher denomination notes did not appear until 2001 and 2003 when notes for $500 and $1000, respectively, were issued for the first time. Collectors will find it very easy to obtain all of the engraved notes that were issued between 1995 and 2004. Although the relative prosperity of Zimbabwe (by African standards) continued for much of the 1980s and 1990s, the ruthless character of the Mugabe regime manifested itself in a number of ways. During 1982-85 there were a series of brutal repressions of the Matabele people in the southern part of the country. By the 1990s increasingly strong pressure was being put on the remaining European population to give up their properties and turn them over to Mugabe’s government. Most Europeans were large- scale farmers, and the economy of the nation was very much dependent on their output. By transferring these efficient large-scale farms into the hands of cronies of Robert Mugabe, most of whom had little training in commercial agriculture, his government was courting economic disaster, and indeed that is what did happen. By the first couple of years into the new century Zimbabwe was facing very serious inflation, and it was rapidly losing friends, at least among western countries. The last note engraved by TDLR was a $500 note signed by the notorious Dr. Gideon Gono, who took over as governor of the Reserve Bank from L. L. Tsumba late in 2003. Gideon Gono’s “doctoral degree” is from a diploma mill, but over the next few years he proved himself adept at laundering huge sums of money and ruining the nation’s currency. Thomas de la Rue refused to print any more banknotes for Zimbabwe after 2004, but during the next five years Zimbabwe managed to produce one of the most extreme hyperinflations ever recorded. The so-called “first dollar” continued to be used up to August 1, 2006, but between 2003 and 2006 the Zimbabwean Reserve Bank experimented with two different types of currency items. The first of these were the so-called travellers cheques. These were issued in denominations of $1K, $5K, $10K, $20K, $50K, and $100K dollars. (Note: to avoid writing too many zeros in this article, I shall follow the common practice of using K = thousand, M = million, B = billion, and T = trillion in some instances.) Most of the travellers cheques that I have seen appear to have been used in September or October of 2003, when the official exchange rate for the Zimbabwe dollar was about $6000 Z per $1 USA. Each denomination is lithographed in its own distinctive color, and there are no inscriptions on the backs although a wavy pattern is found on all of them. All bear the signature of C. Paper Money * Nov/Dec 2014 * Whole No. 294 424 Chikaura as acting governor of the Reserve Bank. When issued a cheque would be signed by the payee, and then that person would countersign the cheque when it was cashed. I have not seen any blank cheques of this type. The WPMC (World Paper Money Catalog) lists these items as nos. 15-20, but its listings are confused. Values are quoted for both VF and CU grades, but I am not clear as to just what these terms mean for these cheques. A problem with them is that they could be used only once, and the items on the market all appear to be in attractive and unfolded condition. Cheques with heavy folds would certainly be worth less, but these items did not circulate from hand to hand, and so they did not pick up the sort of wear and tear that might be expected for circulated banknotes. All cheques that I have seen feature the computer coded numbers, 1101 – 0202727 – 701, at their bottoms. These cryptic numbers refer to an account number of the Reserve Bank. The serial number of an individual check appears at its left bottom, and sometimes the denomination of the cheque is spelled out (in numerical code) at its right bottom I have encountered offerings of these cheques on eBay and other sources, and their prices seem to be much less than what has been listed in the WPMC. A complete set of six should cost about $20 to $25. For a while it seems as though the $5000 cheques were scarcer than the others, but a new supply of these seems to have reached the market. A typical cheque will bear two signatures of the bearer, a teller stamp with the location and date that the cheque was cashed, and an inward clearing stamp of the Reserve Bank in Harare or Bulawayo that is dated several days later. A wide variety of endorsements is possible, and one could collect these items in that fashion, but their major problem is that they could be used only once. Apparently they were largely out of use by the end of 2003. There is a second series of emergency bearer cheques that are also in the WPMC that are listed by them as nos. 13-14 and 24-27. These were cheques issued in 2003-04 by the private Cargill Cotton firm and signed by two of their officers. The denominations range from $5K to $100K. These items appear to be quite scarce, as I hardly ever see them for sale. It should be noted, however, that they are private issues and not issues of the Zimbabwe government. During 2004, 2005, and the earlier part of 2006 most of the currency in circulation consisted of what were termed “Bearer Cheques” by the Reserve Bank of Zimbabwe. The denominations were $5K, $10K, $20K, $50K, and $100K, although the last two values were not issued until 2006. The two high values feature a lithographed image of Victoria Falls on their backs, while the three lower values feature only colored frames. All of these items feature a watermark of a Zimbabwe bird together with the letters RBZ. Although they were referred to as bearer cheques, they are in effect banknotes that required no endorsements for their use. All bear the cryptic number 02022909 which refers to an account number of the Reserve Paper Money * Nov/Dec 2014 * Whole No. 294 425 Bank. All of these items include an expiry date that was as late as December 31, 2006, or five months after the first of the so-called “second dollar” notes were issued. By then, however, inflation would have rendered these items near worthless in terms of their buying power. By far the most available of these items are those that bear the signature of Gideon Gono and identify him as Dr. G. Gono, Governor. There are also varieties that do not have his name in print or that were signed by C. Chikaura as acting governor. The last varieties of the $20K, $50K, and $100K notes of this type are by far the most available, and they should cost no more than a couple of dollars each. The $5000 and $10,000 notes are definitely scarcer, and the earlier varieties with Chikaura’s signature seem to be quite uncommon. Something like 20 different varieties exist for all five of the denominations with from two to six of these per value, but putting together a complete collection of these “bearer cheques” would be quite a challenge. On August 1, 2006 Gideon Gono put into use the so-called “second dollar” in an action that he termed Operation Sunrise. The conversion rate was one new dollar for 1000 of the old, but by this point the hyperinflation was beginning to go totally out of control. The notes in this new currency were also referred to as bearer cheques and all but the last four values feature the account number 02022909. At the time of the conversion the “official” exchange rate was 250 new dollars to the US dollar, while the “parallel” market rate was about 600 to the dollar. Apparently some of the notes had been printed in less inflated times, since values for 1, 5, 10, and 50 cents along with $1, $5, and $10 notes were included. I have no idea as to why the fractional notes were issued, since their exchange values would have only been small fractions of a U. S. cent. Some coins may still have been around, but their values in terms of their metal content (in copper and nickel) would have been far higher. These notes were all printed by Fidelity Printers in Zimbabwe on paper that was supplied by the German firm of Giesecke & Devrient. All bear a watermark of a Zimbabwe bird, and most also have the initials RBZ in watermark form. A few, however, appear to have been intended for $500 notes, while one value (for $750,000) includes a holographic strip and the watermark for a $1000 note. Although only lithographed, all of these notes include a security strip, and overall the quality of production was fairly high. The second dollar suffered from extreme inflation throughout its existence. It was abolished just two years after it was introduced, but at a conversion rate of ten billion to one of the new “third dollars.” This would be equivalent to an inflation rate of Paper Money * Nov/Dec 2014 * Whole No. 294 426 ten million percent per annum. This is roughly the same as rates of 160% per month or 25% per week. These values sound “tamer,” but in fact they are all just about the same. A total of 32 different notes were issued in the “second dollar” series, and the entire set is available in new condition for about $100 or so. Some values are more common than others, but none are scarce. All notes were numbered in blocks of ten million notes. Some values (including the four fractional values) seem to have only been printed in the AA block, but I have noted serial number blocks as high as AW and BB for the $100,000 and $200,000 notes, respectively. There are two rare varieties of these notes, and one should be on the lookout for them. The $10K and $100K notes exist with their values inscribed 10000 and 100000, respectively. These occur only in the AA serial number blocks, and they were soon changed to 10 000 and 100 000 (i.e., with a blank space before the last three zeros). The notes without these spaces are far rarer and are worth very large premiums. The notes of this set were issued over a period of just under two years, from August 1, 2006 to July 1, 2008. The range in their face values, however, was huge – amounting to a total of 1013. Probably the fractional denominations were printed well before they were actually issued and at a time when it was thought that the new dollar would have a much higher value than proved to be the case. Values as high as $10,000 were issued from the beginning, and within a year these notes had increased to $200,000. The issue of notes for $250K, $500K, and $750K seems a bit peculiar since notes for $1M, $5M, and $10M were soon at hand. As things turned out, the note for $750,000 had the most elaborate security features of any note in this series. The four highest values of this series – for $5, $25, $50, and $100 billion dollars – were termed “special agro-cheques,” and their backs depicted grain elevators, a scene not used up to then on any other notes of Zimbabwe. Although they were supposed to be high-value notes with real buying power, when the so-called “third dollar” was introduced one month after the last of these at a conversion factor of ten billion to one, the $100B agro-cheque was worth only $10 of the new dollars or about four cents in U. S. currency. The so-called “third dollar” was introduced on August 1, 2008. The seven lowest values of this set (of 27 values) are dated 2007 and were apparently printed previously, most likely by Giesecke & Devrient. Presumably they were prepared for a time when the dollar would be worth more, but when introduced the exchange was something like $250 Z to $1 U. S. A $10,000 note was soon added, but this was the last note of this series to include watermarks or metallic security strips. The Chiremba balancing rocks are again featured on the faces of all these notes, while their backs depict scenes that had previously been used on many Zimbabwean notes. The third dollar proved to be a very short-lived currency, since it lasted only from August 1, 2008 to February 2, 2009. The conversion to the fourth dollar was at the rate of one trillion to one. The entire set of 27 “third dollar” values is readily obtainable at a price of $75 or so. These notes also used seven-digit serial number blocks preceded by two-letter designations. Most of the blocks that I have seen are either AA, AB, or AC, so it seems that these notes were produced in substantially smaller quantities than was the case with some values of the second dollar notes. On the other hand, this series was only in use for about six months as compared with some two years for the previous series. Paper Money * Nov/Dec 2014 * Whole No. 294 427 An inflation rate of one trillion to one over a period of only six months totally boggles the mind. This is equivalent to a rate of 10,000% per month or 190% per week. Especially popular with collectors are the last four notes of this series that have values of 10, 20, 50, and 100 trillion dollars. Collectors also like the fact that the zeros (all 14 of them for the highest value) are written out. Zimbabwe’s only serious competition in the hyperinflation department was Hungary in 1946 when equally ludicrous notes were produced, although Yugoslavia in the early 1990s did offer both of these countries some competition. The highest value actually issued by Hungary (WPMC no. 136) was for 1020 pengo which was written in Magyar as szaz (= hundred) millio (= million) billio (= trillion) pengo. An even higher face-value note was printed, but it was never issued. In terms of the original Zimbabwe dollars, however, the $100T note had a face value of 1027 dollars. For local people living in Zimbabwe during this period a very important factor was how much money were they allowed to withdraw at any given time, which was usually quoted as the amount of cash permitted per week. Usually this was only enough to provide for the most basic of necessities. The so-called fourth dollar was introduced on February 2, 2009, but it only lasted for a little more than two months until April 12, 2009. The conversion factor was one trillion “third dollars” to one of the new units. Thus the four highest of the last series passed for $10, $20, $50, and $100 in the new currency, and both circulated together. There were seven denominations in the fourth dollar set, all of which are dated 2009. In addition to notes for $10, $20, $50, and $100, there were also notes for $1, $5, and $500. This set of seven notes is easily obtainable and can be had in CU condition for about $15 or $20. Oddly enough some sort of stability took over and the exchange rate settled at about $300 Z per $1 US. But the Zimbabwean people were getting sick and tired of the torrents of worthless money, and it seems that the government was running out of paper on which to print new notes. Paper Money * Nov/Dec 2014 * Whole No. 294 428 So the ultimate happened. The Zimbabwe government fully legalized trading in foreign currency, and it ceased to print Zimbabwe dollars altogether. Since April, 2009 only foreign currency has circulated in Zimbabwe, and no Zimbabwe notes of any vintage are acceptable. The currencies most widely used are the U. S. dollar and the South African rand. The Botswana pula, the currency of the diamond-rich nation to the immediate south of Zimbabwe, is also used in addition to euros, British pounds, and a few other convertible currencies. One of the important functions of a reserve bank is to remove and destroy old and heavily worn money from circulation. Today the Reserve Bank of Zimbabwe hardly functions at all, and since Zimbabwe and the United States are barely on speaking terms with each other, there seems to be no arrangement with the Federal Reserve System for removing and replacing heavily circulated notes. As a result, much of the U. S. currency in circulation in Zimbabwe is in tatters. The situation becomes even more complex, since most of the coins in circulation are South African rather than American. Most of the economic history of Zimbabwe for the past fifteen years or so has been a disaster. It has gone from a relatively prosperous nation by African standards to becoming a true basket case. In 1994 the per capita income of Zimbabwe was about $1200, and this datum can be compared with that of such nations as Ghana ($900), Senegal ($1100), or with far poorer Malawi ($400). Today the estimated per capita income of Zimbabwe is $500, which puts it down in the same league as Burundi ($600) or the Congo Democratic Republic ($400). Even Malawi with an estimated per capita income of $900 now stands well above Zimbabwe. Over these years Ghana has made real progress, and its per capita income is about $3100, while Senegal stands at $1900 in this regard. During 2008 Zimbabwe endured an extremely corrupt and brutal election that retained Robert Mugabe and his ZANU-PF (Zimbabwe African National Union – Patriotic Front) in power. Again in 2013 he was returned to power in another disputed election. Today Mugabe is 90 years old and the ZANU-PF is split into several factions, but no one wants to discuss the succession, since many persons fear the Zimbabwe will descend further into chaos when he goes. This is a sad outcome for a nation that once showed much promise, but at least it has resulted in many interesting monetary issues while at the same time demonstrating to all of us how not to run a reserve bank. References: The internet Wikipedia website for the Zimbabwe dollar provides an excellent survey of the history of this currency unit. The Zimbabwe section of the current World Paper Money Catalog provides a fairly reliable listing of the issues of this country. The World Almanac provides current data on the per capita incomes of the nations of the world. This book is published annually, and another useful reference work is “Africa South of the Sahara” that was published annually by Europa Publications, Ltd., in London. Paper Money * Nov/Dec 2014 * Whole No. 294 429 An Update on Unlisted Sterling, Alabama Notes  by Bill Gunther  In the November/December 2011 issue of Paper Money, I reported on the piece of scrip  shown below.  Despite the missing piece on the left side of the note, I was able to conclude that  the note  (25 cents) was  in  fact  from a town named “Sterling”  in Cherokee County, Alabama.1  (Figure 1)   The community of Sterling was only a few miles to the west of the Coosa River and  the note and location were unlisted in any reference work.  Further research revealed that the  signature on the note was that of a “C. M. Lay,” who captained steamboats on the Coosa River  in  1862‐1863.        In  that  article  it  was  further  pointed  out  that  C. M.  Lay’s  son, William,  accompanied  him  on many  trips  and  became  enamored with  the  potential  power  the  river  contained for the development of hydroelectric power.   He used this knowledge to eventually  found the Alabama Power Company in 1906.    Figure 1 – This Rosene2 Unlisted Note  appears to be from Sterling, Alabama  Although a vignette of a locomotive with a load of cotton appears on the note, it would  seem  likely that  this scrip was used by C.M Lay on his steamboat  trips along  the Coosa River  between Rome, Georgia  and Wetumpka, Alabama.   After  searching  a number of  archives of  currency auction houses, I concluded that this note was  likely unique since “no other notes of  this issuer have surfaced…”  Recently a second note (50 cents) has surfaced and it is largely complete, providing new  information that was missing on the first note.   (Figure 2)   Although this note  is unsigned and  unnumbered  (a “remainder”), we have previously established  the  fact  that  these notes were  used by C. M. Lay, a steamboat captain.     What  is most  interesting with  this note  is  that  the  location is now revealed as “Near Sterling”, not Sterling!   I know of no other Alabama note that  whose place of issue refers to “near” another place.    An interesting question is where should  this note be cataloged geographically?  Sterling or “Near Sterling”?  Paper Money * Nov/Dec 2014 * Whole No. 294 430 Figure 2 – This Rosene Unlisted  Note clearly states it is from  “Near Sterling, Ala.”  The reference to “near” Sterling would be consistent with C. M. Lay operating his  steamboat business along the Coosa River while living a few miles away in the community of  Sterling.  Both notes were printed by Mason’s Job Office in Rome, Georgia.   Rome, less than 30  miles from Sterling, was also on the Coosa River and it is likely that C. M. Lay was there often  with his steamboat.  Footnotes  1Bill Gunther, “Who Were They? Tracing Names on Alabama Notes,” Paper Money,  November/December 2011, pp442‐443  2Rosene refers to Walter Rosene, Jr.’s Alabama Obsolete Notes and Scrip (Society of Paper  Money Collectors, 1984.  L_tt_r to th_ _^itor Dear Sir: I do appreciate the very fine review of my new book on Large-Size Notes that was written by Gary J. Dobbins and appeared in the Sep/Oct issue of Paper Money. There are two points, however, that do need clarification. This book is entirely distinct from that Seventh Edition of the Comprehensive Catalog that was published by BNR Press in 2006. That book - by Gene Hessler and myself - is 672 pages long and covers numerous topics as well such as the history of paper money, Small-Size Notes, Fractional Currency, MPCs, Test and Specimen Notes, etc. Copies of this book are still available from me at my address (P. O. Box 804, Kutztown, PA 19530). Published early in 2006, it obviously contains no data later than 2005. A second point that I need to mention is that most notes are not priced in VG, F, and VF. This is only done in a few exceptional cases such as Demand Notes where "valuations" of notes in XF or higher would be meaningless. In general, the valuations are in F-15, XF- 40, and CU-63. There are many thousands of auction realizations that are quoted, and I do comment on a few of these where I feel that the realizations were dangerously high. I shall be most interested to learn of any additional comments on this book from any interested readers. Carlson R. Chambliss. Paper Money * Nov/Dec 2014 * Whole No. 294 431 Peter A. Treglia Matthew W. Quinn John M. Pack Brad Ciociola Trust Your Collection to the Experts Whether you are an accomplished collector or if you are new to the numismatic market, the experts at Stack’s Bowers Galleries are available to guide you through the entire auction process. Contact us today to discuss including your personal collection or rarities in one of our renowned auction events, or for assistance in buying in one of our worldwide auction events. Peter A. Treglia LM #1195608 John M. Pack LM # 5736 Brad Ciociola Peter A. Treglia Matthew W. Quinn John M. Pack Brad Ciociola 800.458.4646 West Coast Offi ce • 800.566.2580 East Coast Offi ce 1063 McGaw Avenue Ste 100, Irvine, CA 92614 • 949.253.0916 • New York • Hong Kong • Irvine • Paris • Wolfeboro SBG Paper Money Trust 9.10.14 America’s Oldest and Most Accomplished Rare Coin Auctioneer Fr. 167b. 1863 $100 Legal Tender Note. PCGS Very Fine 25. Price Realized: $352,500 Fr. 193a. July 15, 1864 $100 Compound Interest Treasury Note. PCGS Very Fine 35 Apparent. Restorations. Price Realized: $282,000 Fr. 1191. 1882 $50 Gold Certi cate. PCGS Extremely Fine 40. Price Realized: $411,250 Fr. 2220-J. 1928 $5000 Federal Reserve Note. Kansas City. PCGS Extremely Fine 40. Price Realized: $141,000 Fr. 324c. 1878 $50 Silver Certi cate. PCGS Very Good 10 Apparent. Restorations. Price Realized: $329,000 Fr. 1203. 1882 $100 Gold Certi cate. PCGS Fine 15. Price Realized: $470,000 George McGovern’s $1000 Promissory Note by Loren Gatch While the word “flip-flop” has been a part of America’s political lexicon since the early 20th century, as a piece of political invective the term has become widespread only in the last generation. As with most political speech, the more it has been used the less it means. Nowadays, almost any apparent inconsistency—or even the intellectually honest act of changing one’s mind—gets a public figure in hot water. Back in 1972, however, “flip-flop” did most definitely describe the behavior of the Democratic Party’s presidential candidate, George McGovern, towards his running mate, Thomas Eagleton. The fiasco of McGovern’s embrace and then disavowal of his vice-presidential choice not only created the “Eighteen-Day Running Mate” but gave rise to a widely-available example of political scrip, George McGovern’s $1000 Promissory Note. The 1972 presidential campaign of George Stanley McGovern (1922-2012) occurred at an important juncture of recent American political history. The Republican Party’s electoral strategy had only just begun to peel away important parts of the Democrats’ New Deal coalition, especially Southerners hostile to the Democrats’ support for civil rights. For their part, the Democrats’ outreach to minority voters as well as to the antiwar movement pulled the party to the left in a way that loosened its ties to working-class whites. Indeed, it was Vice President Spiro Agnew’s slashing rhetorical style that defined an increasingly common Republican campaign trope: Democrats were liberal elitists who had lost touch with the values and interests of what Nixon called the “Silent Majority.” If anybody could bring the anti-war left into the Democratic Party, it was George McGovern. The senator from South Dakota was a decorated bomber pilot during the Second World War and possessed a reputation for great personal integrity. At first a long shot in the 1972 Democratic primary season, McGovern exploited his grassroots organizational strength among the anti-war movement, civil libertarians, and minorities to gain ground against party stalwarts like Edmund Muskie and Hubert Humphrey. A weak showing by Muskie in the New Hampshire primary in February was followed by McGovern’s victories over Humphrey in Wisconsin and California. The assassination attempt on George Wallace removed yet another challenger, and by June McGovern emerged as the front runner and presumptive nominee at the Democratic convention in Miami Beach in early July. The Democratic Party establishment did not welcome McGovern’s surge. Organized labor, in the form of George Meany’s AFL-CIO, did not endorse him. In order to both bolster his appeal to white ethnic voters and reassure his party’s establishment, McGovern tried repeatedly to get Teddy Kennedy for the vice presidential slot. Polling suggested that a McGovern-Kennedy ticket had the best shot at beating Nixon. However, smarting from the Chappaquiddick scandal, Kennedy was uninterested, and his own presidential ambitions probably disinclined him from lending his marquee name to the ticket. A Kennedy playing second fiddle was simply improbable. As Hunter S. Thompson put it, “it would be like the Jets trading Joe Namath to the Dallas Cowboys as a sub for Roger Staubach.” The convention proceedings in Miami Beach stretched on in a way that rushed the selection of McGovern’s vice-presidential candidate. When other alternatives, like Boston’s mayor Kevin White, proved unacceptable, the McGovern forces finally turned to Thomas Francis Eagleton (1929-2007), the junior senator from Missouri. While not as well-known as Paper Money * Nov/Dec 2014 * Whole No. 294 432 Kennedy, Eagleton’s Catholicism and his links to organized labor promised to balance the ticket in a similar way. With hardly any vetting of his background, Eagleton was offered a spot on the ticket on July 13 in a phone conversation with McGovern that lasted barely one minute. It was only after accepting the nomination that Eagleton confirmed rumors that since 1960 he had been hospitalized three times for depression, and twice undergone electroconvulsive—popularly called “electroshock”—therapy. Not only had Eagleton dissimulated in failing to tell the McGovern campaign about these episodes, he continued to resist explaining his medical record in any detail. Eagleton’s stance put the McGovern campaign in a terrible bind. Forcing Eagleton off the ticket would look callous, and destroy McGovern’s image as a different, and more principled, type of politician. Yet keeping Eagleton raised enormous doubts about the competence of a man who might be second in line to assume the presidency, as well as about McGovern’s own sense of judgment. In a joint press conference with McGovern on July 25, Eagleton first publicly confirmed his past hospitalizations, and McGovern famously declared that “I am 1,000 percent for Tom Eagleton and have no intention of dropping him from the ticket.” The statement was, according to Theodore H. White, “possibly the most damaging faux pas ever made by a Presidential candidate.” The pushback against McGovern’s decision was intense. The liberal press was against Eagleton; donations to the Democratic Party dried up; and McGovern’s own campaign workers were dealt a demoralizing blow. Manufacturers even ceased the production of McGovern- Thomas Eagleton (left) and George McGovern (right) at the 1972 Democratic convention Paper Money * Nov/Dec 2014 * Whole No. 294 433 Eagleton campaign posters, bumper stickers, and buttons. Those Democrats pushing for Eagleton’s removal from the ticket contended that it was not his history of mental illness, but how he had misled McGovern that disqualified him—the problem was Eagleton’s character, not his sanity. The Nixon White House was already well-informed about Eagleton’s medical past, and if he were to remain a candidate the campaign attacks that fall would be predictable. Facing this pressure, the McGovern campaign sought indirectly to get Eagleton to leave the ticket for the good of the party’s chances in November. Eagleton resisted, and even contended that the controversy would make him a stronger candidate. Yet a chasm of distrust had opened up between the staffs of the two candidates, and by July 31 Eagleton bowed to the inevitable and withdrew his name. It remained unclear whether McGovern was hurt more by the way he pushed Eagleton out than by the liability Eagleton might have represented had he stayed on the ticket. After the fiasco, a second, ignominious round of candidate selection produced Sargent Shriver as Eagleton’s replacement. In any case, public support for McGovern henceforth collapsed. McGovern’s unfortunate use of the term “1,000 percent” regarding Eagleton also resonated with one of his earlier campaign proposals to reform the country’s welfare system. McGovern had proposed to give each American a $1,000 payment (a “demogrant”); an idea that, linked with a broader tax reform, actually had a certain academic pedigree and was a forerunner of what later emerged as the Earned Income Tax Credit. On its face, though, the notion was easy to caricature; Humphrey ridiculed it during the California primary, while Nixon’s campaign director Clark MacGregor called it a “$1,000-per- person giveaway program that would split America permanently into a welfare class and a working class.” While McGovern had abandoned the proposal by the time of the party convention, the humorist Art Buchwald noted the parallel suggested by the same number. In a column in early August, Buchwald imagined McGovern arguing, “if I’m going to give everyone in this country $1,000, then my Vice President should get 1,000 percent support from me.” A short time later, during the Republican convention (also in Miami Beach), Scripps- Howard newspapers noted how “funny money—fake $1,000 bills bearing the face of Democratic presidential nominee George S. McGovern—floods convention hotels.” Dispensed over souvenir store counters at the convention, the $1,000 bills sport a red profile of McGovern, facing to his left, framed by blue scrollwork. The text, also in red, reads “Here’s the $1,000 McGovern promised everyone”, “Legal tender to anyone stupid enough to take it at face value”, and with the promise that “On Nov. 7, 1972 this bill will self-destruct.” The reverse (of which there seem to be two varieties, one printed brown, and another green) is labeled a “promissory note” with a portrait of an agitated and perspiring Eagleton mopping his brow. “McGovern says he’s behind me 1,000 percent”, “but…he didn’t say how far behind!” This side is described as “Payable Nov. 8, 1972, at Credibility Gap, U.S.A.” Thomas Eagleton, at the news conference announcing his departure from the race. Paper Money * Nov/Dec 2014 * Whole No. 294 434 Crudely printed on the cheapest paper, the parody notes deftly juxtaposed the two lines of attack directed at McGovern’s candidacy: that his policy proposals were too radical for the nation and that his treatment of Eagleton reflected poorly on McGovern’s character and judgment. Reproduced in facsimile in newspapers across the country, the notes themselves quickly showed up at political events as far away as San Antonio, Texas. The Democrats never recovered from the Eagleton debacle, and the McGovern-Shriver ticket went on to lose in November 1972 by the widest margin of the popular vote in the history of presidential elections. Spiro Agnew resigned the Vice Presidency hardly a year later, and Nixon himself was brought down by the Watergate scandal by August 1974. After the Eagleton experience, vice presidential nominees were never again selected so casually and without proper background checks. REFERENCES El Paso [TX] Herald-Post, August 21, 1972. Facts on File, Presidential Election of 1972 (NY: Facts on File, Inc. 1973). Glasser, Joshua, The Eighteen-Day Running Mate (Yale University Press 2012). San Antonio [TX] Express-News, September 3, 1972. Sarasota [FL] Herald-Tribune, August 6, 1972. The New York Times, July 23, 2012. The [Roselle, IL] Herald, September 1, 1972. The Troy [NY] Record, August 23, 1972. Thompson, Hunter S. Fear and Loathing on the Campaign Trail ’72 [1973] (Grand Central Publishing 2006). White, Theodore, The Making of the President 1972 (NY: Atheneum Publishers 1973). Paper Money * Nov/Dec 2014 * Whole No. 294 435 Bourse Information: Patricia Foley (414) 698-6498 • Central States Numismatic Society 76th Anniversary Convention Schaumburg, IL Schaumburg Renaissance Hotel & Convention Center April 22-25, 2015 (Early Bird Day – April 22 – 12 noon-6pm $75 Registration Fee) Visit our website: Hotel Reservations: Schaumburg Renaissance Hotel - 1551 North Thoreau Drive. Call (847) 303-4100 Mention rate code “COICOIA” for our $153 rate. Free Hotel Guest and Visitor Parking. • Free Public Admission: Thursday-Friday-Saturday No Pesky Sales Tax in Illinois • Civil War Educational Forum • Educational Exhibits • 275 Booth Bourse Area • Heritage Coin Signature Sale • Heritage Currency Signature Sale • Educational Programs • Club and Society Meetings • Free Hotel Guest and Visitor Parking Series of 1934 $5 silver certificate mules were overprinted with serial numbers from every serial block from D-A to P-A except for I-A and J-A. Coincidental timing caused the absence of mules from those two blocks: None could be printed between May 1940 and June 1945, when the application of those entire blocks occurred; specifically, the I-A block during 1941, and the J-A block during 1941- 42. Five-dollar silver certificate mules first appeared in January 1938, when the Bureau of Engraving and Printing began etching macro plate serials instead of micro serials to all finished plates. They made the change in response to a request of the U.S. Secret Service, who wanted it made easier to read the plate serials when analyzing for counterfeit notes. The Bureau certified the first $5 Series of 1934A silver certificate macro faces on January 7, and followed with the first $5 macro backs on the 11th. The 1934A faces initially went to press on January 10, and were mated with micro backs to create the first $5 silver certificate mules: notes with macro faces and micro backs. The macro backs went to press two months later, on March 16, and were mated with 1934 micro faces, and also 1934A faces, which created another mule variety: notes with micro faces and macro backs. The Bureau eventually phased out all 1934 micro faces from service by September 16, 1938, leaving only 1934A macro face-micro back mules as possible $5 silver certificate mules. These were produced in abundance throughout the E-A and F-A serial blocks, but their appearance began to dwindle in the G-A block. By August 1939, the Bureau had only three $5 micro back plates still in service: 902, 905 and 938. They removed the last plate, micro back 905, from use on February 5, 1940. Supplies of printed 905 back sheets would last a few more months until exhausted just after numbering of the H-A block began in May 1940. The Bureau was printing large quantities of silver certificates in the early-1940s and completed the H-A block early in 1941. They quickly finished the I-A block before the end of 1941, and then the J-A block before 1943 arrived. Production then slowed drastically during the middle of World War II in 1943 and 1944--the only $5 silver certificates printed during those two years were 12 million K-A block North African yellow-seals. Small Notes by Jamie Yakes No $5 Silver Certificate I-A & J-A Block Mules Paper Money * Nov/Dec 2014 * Whole No. 294 436 The Bureau increased $5 silver certificate production in 1945, when the Treasury decided to monetize stockpiled silver bullion not previously held as backing for silver certificates. Production of $5 mules also resumed that summer, when on June 23, late-finished micro back plate 637 went to press for the first time. By then, the J-A serial block was a distant memory. The first waves of $5 silver certificate 637 mule sheets received higher K- A block serials. Back 637 remained in use until 1949. Sheets printed from it and another late-use plate, micro back 629 used from 1947-48, provided feedstock for the $5 Series of 1934A, 1934B, and 1934C silver certificate mules numbered with K-A to P-A block serial numbers. Acknowledgments: The Professional Currency Dealers Association and the Society of Paper Money Collectors supported this research. Sources Used: United States Treasury. Bureau of Engraving and Printing. Ledgers Pertaining to Plates, Rolls and Dies, 1870s-1960s. Volume 10. Record Group 318: Records of the Bureau of Engraving and Printing. National Archives and Records Administration, College Park, Maryland. Figure 1: $5 silver certificate H-A block mules--the last mules possible before the I-A and J-A blocks were numbered--are a small-size rarity. Paper Money * Nov/Dec 2014 * Whole No. 294 437 The Obsolete Corner Wow…What a Sheet! by Robert Gill Each time I write an article for Paper Money, I encourage readers to contact me with comments so I can learn more about my subject. And generally I get a good response from a few of our readers. When this years July/August issue went to our members, the results were the same. At that time my family and I were enjoying a week of vacation in the Caribbean. But as I always do when away from home, I had my laptop with me so that I could daily check my email. I received some nice comments from Guy Kraus, who wrote the book on Mississippi Obsoletes. And since that time, we have had several phone conversations about our Mississippi sheets. I also had some nice communication with David Sundman, owner of a large coin company located in New Hampshire. But one other contact made it possible for me to add another sheet, and a very interesting sheet I might add, to my collection. One of our members, Pat Mullen, contacted me about an obsolete sheet that he had. Pat operates Mullen Coins, which is in Grand Rapids, Michigan. In his email he said that he had a very interesting, and what he thought to be rare, scrip sheet that he had not been able to find any information on. Obviously, my curiosity immediately kicked in, and I went to his website. And there he had a sheet, of what I think is advertising notes, on "Dwight Merriman, Bookseller & Stationer". As I'm fairly learned in Michigan Obsoletes, I quickly recognized that I knew nothing of this issuer. And even more so my interest was peaked because of its high denomination notes consisting of seven $100 bills. I quickly contacted him and asked that the sheet be held until I got back home in a few days. When I returned home I called Pat to talk about and make arrangements to get possession of the sheet. He said he had tried to research the sheet, but to no avail. And since that time, I've had the same results. Pat had shown the sheet to an interested dealer at a show. But luckily for me, that person was not ready to pay the asking price. During their conversation, it was mentioned that the sheet could very well be worth more if cut into single notes, as Michigan collectors would probably love to put a "single" of an unreported merchant in their collection. Obviously, cutting is a "no-no" to an avid sheet collector like me! After receiving the sheet, I began to relentlessly research the issuer. Dr. Wallace Lee, in his book "Michigan Obsolete Bank & Scrip Notes", makes no mention of this merchant. And Harold Bowen does not write about Michigan scrip in his book. I have searched the internet looking for some hint about this person and his business, but I keep running into a dead end. As seen in the photo, the notes clearly state they are from the State of Michigan. And the business was located on Main Street, as printed on the bottom left center of each note. On the bottom right center is the name Jackson. There was a town in Michigan called Jackson during obsolete days, so I'm assuming that Mr. Merriman operated his business at a location on Main Street in Jackson, Michigan. Because there is no hint of a date on the notes, I really don't have a time frame to go by. But the style of print does suggest to me the notes were probably printed during the middle 1800s. Unlike most obsolete scrip notes, not only are these high denomination, they are also full sized, as this sheet measures 11" x 17". In closing, I am thoroughly intrigued by this sheet, and its lack of information. I've come to the conclusion that the only hope I have of finding anything about it is if one of our members has come across Mr. Merriman at sometime in the past. I would like to encourage anyone that may be able to shed some light to contact me at So, until next time, HAPPY COLLECTING. Paper Money * Nov/Dec 2014 * Whole No. 294 438 Paper Money * Nov/Dec 2014 * Whole No. 294 439  Jonathan A. Bliss and the Gainesville  (Alabama) Insurance Company  by Bill Gunther  In  today’s world,  risk  is  something we  rarely embrace.     Fortunately  for Alabama,  the  story was  very much  different  in  the  early  years  following  statehood  in  1819.     Many  early  migrants  to Alabama  left very comfortable  lives  in settled communities  to  face  the  inevitable  risks of a “frontier” life, believing or at least hoping that the risk‐reward tradeoff favored their  actions.  Jonathan A. Bliss of Vermont made just such an assessment when he decided to invest  in the “New England Land Company”, a company which ultimately became associated with the  development of Gainesville, Alabama.  Jonathan  A.  Bliss  came  to  Alabama  in  1836  as  a  practicing  attorney  and  land  speculator.     However,  in  the mid‐1850s,  he  also  embarked on an additional career when he became  the president of  the Gainesville  (Alabama)  Insurance Company.         When and why he  ventured  into  the  insurance business  in Alabama  is one of  the more  interesting  questions  explored  in  this  article.      His motivations  and  personal story, while  like those of many other early settlers, takes us  through  a  number  of  interesting  historical  events  including  the  unrestrained  land  speculation  of  the  1830s,  the  rapid  growth  in  the  sale of life insurance (especially insurance on slaves) in the 1850s, and  the  difficult  choices  faced  by Northerners  living  in  the  South  at  the  beginning of  the Civil War.     We begin with a  look  Jonathan’s  family  background, his training  in  law and the circumstances surrounding his  decision to come to Alabama.   Who Was Jonathan Bliss?     Jonathan Bliss was born in 1799, the first of eight children born to Shuboel and Martha Bliss.   His parents were married  in  their home  state of Massachusetts  in 1798, but  then moved  to  Vermont just before Jonathan was born.1   Vermont had grown very rapidly following the end of  the French and Indian War (1764) and many individuals from Massachusetts sought more space  and  lower  land prices  in Vermont.    Jonathan’s younger sister Martha, who was born  in 1811,  would be the only Bliss sibling who would follow Jonathan to Alabama.2     Jonathan’s early schooling must have occurred in Vermont, although there is no indication if  it was public or private education.   We do know however  that he began his  legal  training at  Northampton  (Massachusetts)  Law  School  in  1823  (the  year  of  its  founding).    While  at  Northampton,  he  “read  law”  guided  by  two  graduates  of  Dartmouth.3      Not  surprisingly,  Jonathan subsequently enrolled at Dartmouth College in Hanover, New Hampshire. Jonathan’s decision to enroll at Dartmouth may have also been influenced by a very public  battle  between  the  Board  of  Trustees  of  Dartmouth  and  the  New  Hampshire  Legislature.   Following  several  years  of  instability  in  the  administration  at  Dartmouth  College,  the  New  Hampshire Legislature attempted  to  take over Dartmouth College, change  its mission  from a  private school to a public school, alter the composition of the Board of Trustees, and rename it  Fig. 1 ‐ Jonathan A. Bliss  (about 1870‐79)  Source:   Rauner Library,  Dartmouth College  Paper Money * Nov/Dec 2014 * Whole No. 294 440 Dartmouth University.   A  lengthy  legal battle ensued over the right of the state to take over a  private institution, a battle which eventually ended up in the United States Supreme Court.4    Dartmouth College was represented by Daniel Webster, one of the most respected lawyers  in the country at the time and a Dartmouth alum.  When the case ended in 1819, the Supreme  Court reversed  the actions of  the State and returned Dartmouth College  to  its private status. The opportunity to witness this high‐profile case with non‐other than Daniel Webster himself  representing the college, must have had an  impact on Jonathan’s decision to pursue  law as a  career and to attend Dartmouth College.      After  receiving his degree  in 1824,  Jonathan was admitted  to  the New Hampshire Bar  in  1828 and began  to practice  law  in Plymouth, New Hampshire, a  small  town  located only 50  miles  to  the  east  of  Dartmouth.    In  1832,  he  moved  to  Haverhill,  about  35  miles  to  the  northwest, were he practiced law until 1836.5  Jonathan’s George Washington Connection  By  November  of  1831,  Jonathan  Bliss,  certainly  one  of  the  “most  eligible  bachelors”  in  Haverhill, decided  to  settle down and marry.   His bride‐to‐be was Lucretia Ann Curt Leverett  who was from near‐by Windsor, Vermont.6     Windsor was only 19 miles from Haverhill and  it  seems likely that during his time in Haverhill Bliss became acquainted with Lucretia.   Lucretia’s father, Captain William Leverett (1726‐1817), served with George Washington at  Valley Forge  in 1778 and was probably a well‐known  individual  in  the area.7       Other  famous  Leverett  family  members  included  William’s  grandfather,  John  N.  Leverett,  who  was  the  seventh president of Harvard College from 1708‐1724,8  and William’s great‐great grandfather,  another “John” Leverett, who was Governor of the Massachusetts Bay Colony from 1673‐1679.9     While Jonathan was obviously about to marry into a family with significant provenance, his  extended family was also deeply involved in the American Revolution.  At least 148 Bliss’ from  Massachusetts alone, the Bliss family state of residence, served in the Revolutionary War.   One  in  particular,  Captain  Jonathan  Bliss  (1725‐1800),  served  on  the  ship USS  Alfred which was  commanded  by  John  Paul  Jones.10       With  such  pedigrees  between  them,  we  are  left  to  speculate on who attended Jonathan and Lucretia’s wedding!    While  living  in New Hampshire, Jonathan and Lucretia had three children. Their first child,  Martha A., was born in 1832.  Three years later  twin girls (Mary E. and Elizabeth L.) were born,  but unfortunately they both died in infancy.11      In January of 1836, still suffering from the loss  of  their  twin  daughters,  Jonathan,  Lucretia  and  Martha  made  the  decision  to  move  to  Alabama.12   Moses (Lewis) Leads the Way  About the time that Jonathan was embarking on his  legal education at Dartmouth, the  largest migration in the history of the U.S. was occurring.   These migrants came from Virginia,  the Carolinas and even the “hills of New England” to the Mississippi Territory and the “so‐called  Alabama country…”13       Some commentators,  including  this North Carolina planter writing  in  1817,  referred to the strength of the Alabama migration as the “Alabama Feaver (sic):”   “The Alabama Feaver rages here with great violence and has carried off vast numbers of  our Citizens.    I am apprehensive,  if  it continues to spread as  it has done,  it will almost  depopulate the country.  There is no question that the feaver is contagious…for as soon  Paper Money * Nov/Dec 2014 * Whole No. 294 441 as one neighbor visits another who has just returned from the Alabama he immediately  discovers  the  same  symptoms which  are  exhibited  by  the  person who  has  seen  the  allureing  (sic) Alabama.   Some of our oldest and most wealthy men are offering  their  possessions for sale and desirous of removing to this new country.”14  Among  those  who  would  succumb  to  the  “Alabama  Feaver”  was  Moses  Lewis,  a  merchant  residing  in  Bridgewater, New Hampshire.   Moses’  son, William M.,  together with  Jonathan  Bliss  and  David  and William  Russell  formed  the  “New  England  Land  Company”.15    These young men were apparently friends, were from contiguous towns in New Hampshire and  were all born between 1796‐1802.   Evidence suggests that Moses Lewis was also a partner  in  the New England Land Company, perhaps even the primary force behind the partnership.  Moses Lewis is the first to show up in Alabama at least by April of 1824 when he began  to purchase  land  in Greene County, Alabama at public auction.   Bureau of Land Management  records  indicate that Moses purchased two tracts of 80 acres each  in April and another three  tracts, again 80 acres each, in November of 1824.16     That’s a total of 400 acres within his first  year of residence!   It may be more than a coincidence that there were at least five partners in  the New England Land Company and Moses purchased five different tracts, all of the same size!    All of  these purchases were made at public auctions held  in St. Stephens,  the  location of  the  nearest Federal Land Office and less than 100 miles from Gainesville.    Moses Lewis continued  to acquire more  land  in  the  following years with 476 acres  in  1825, 157 acres  in 1826 and 628 acres  in 1830.    In total, Moses purchased 1,661 acres, all  in  Greene County, Alabama.     That’s a  lot of  land, especially  if you are NOT a “planter” and only  have 5 slaves! 17   The most compelling conclusion one can reach is that Moses Lewis continued  throughout  this  period  in  the  land  speculation  business, most  likely  on  behalf  of  all  of  the  partners in the New England Land Company.   While Moses was accumulating  land  in Greene County, he had his eyes on a piece of  land that was adjacent to Greene County but was still part of Choctaw Indian  lands.   Having a  keen eye for the best land, Moses Lewis was lusting after a piece of land that was located close  to the Tombigbee River.  He knew that it would be an ideal location for a shipping port for all of  the cotton that was rapidly becoming the road to riches to many in Alabama.    The land Moses Lewis ultimately acquired involved a somewhat strange turn of events.   The owner of this land was a John Coleman who was married to a Choctaw Indian.18   In 1831  Coleman had  agreed  to  sell  a portion of his  land,  including  the  land  that Moses  desired,  to  George  Struthers Gaines.   Gaines was  a  long‐standing  friend  of  the  Choctaw  Indians  having  served  in the Choctaw trading house between 1805‐1818.19     Shortly after agreeing to sell the  land to Gaines, Coleman received a much better offer from Moses Lewis.  When Gaines learned  that  Coleman  had  a much  better  offer  for  the  land,  he  graciously  freed  Coleman  from  his  obligation and allowed him to sell the land at the higher price.   When Moses Lewis began to lay  out a portion of the land for a town, he recalled the role that Gaines had played in his ability to  acquire the land and named the town in his honor ‐ Gainesville.  While  this  scenario  suggests  it was Moses  Lewis  that  founded Gainesville, one writer  bluntly  claims  that  it was  in  fact  the New  England  Land  Company  that  founded Gainesville.   Since Moses was most  likely a partner  in  the  land  company,  the  two  interpretations are not  contradictory.20 Paper Money * Nov/Dec 2014 * Whole No. 294 442 At the same time that Moses was  laying out the streets  for the town of Gainesville  in  1832, the Choctaws ceded much of their land east of the Tombigbee River and suddenly Moses  found his land in “Sumter County, Alabama.”21   The Panic of 1837  As  land  speculation  continued  unabated,  President  Andrew  Johnson  became  increasingly  concerned about  speculation  in public  lands and  the payment  for  these  lands  in  questionable local scrip and state bank notes.  In July of 1836 his administration issued the now  famous “Specie Circular” which mandated  that all purchases of public  lands be paid  for with  gold  or  silver,  or  paper money  backed  by  gold  or  silver.22      Very  quickly  the  value  of  local  “money” issued by banks, railroads, merchants and others, collapsed.    Many land speculators  found  themselves  unable  to  obtain  the  required  specie  to  pay  their  obligations  and  consequently defaulted on their bank  loans.   Banks then began to fail as well.     Cotton prices  dropped by almost 52 percent between January 1836 and March of 1838.23  These were indeed  “hard times.”  The decision by Bliss and at least two of his partners in the New England Land Company  (the Russell brothers)  to  relocate  to Alabama  in  the  early part of  1836 predated  the  Specie  Circular  and  as  always, bubbles were difficult  to  spot before  they broke.    Yet  they probably  perceived relatively  low risks  to  their move since  they were already significant owners of  the  land that was becoming Gainesville!  At Home in Gainesville  When  Jonathan Bliss  first arrived  in Gainesville  in early 1836, he would have  found a  town alive with energy.   There was a  new hotel called  the American Hotel  which was “a  favorite gathering spot  for visitors and  townspeople with  its  gaming  rooms  and  a  dance  floor  supported on wooden springs to add  bounce  to  the  dancers’  steps  during  the  Virginia  Reel  and  other  popular  dances  of  the  period.”24      It  was,  according  to  some  observers,  the  most  “pretentious  building  in  Gainesville” and included a bell tower  which  rang  three  times  daily  to  announce meal time.25    With horses such a major part of everyone’s  life at  that  time,  it was only  natural that horse racing quickly became an  important social event  in Gainesville and a  race  track was built  just northeast of  town.     The  “North  Sumter  (County)  Course,”  as  it  was  known,  was  reportedly  the  best  track  in  the  Southeast!     With  offerings  of  gaming,  racing  and  dancing,  it  is  no wonder  that Gainesville  would become the state’s third largest city in 1838 behind Huntsville and Mobile.26     Fig  2  ‐  The  American  Hotel,  Gainesville,  Alabama (James Sulzby, Historic Alabama Hotels and Resorts)  Paper Money * Nov/Dec 2014 * Whole No. 294 443 In 1837 after settling in Gainesville, Jonathan and Lucretia welcomed a son to the family.   They  named  the  boy William  L., most  likely  named  for  Jonathan’s  good  friend  and  partner  William Lewis.   Sadly in 1839 Lucretia died after giving birth to a daughter, Mary Elizabeth.  Just  three years  later  in 1842, Jonathan’s son William died.       Jonathan was now a single father of  two girls; an infant (Mary E.) and an eight year old (Martha).  Following the death of his first wife, Jonathan returned to the Northeast for his second  wife, Mary B. R. Kidder of Massachusetts and they married in September of 1844.27      She was  born in 1809 and was ten years his junior, and it is likely that the Bliss and Kidder families were  previously well acquainted.     Following their wedding, Jonathan returned home to Gainesville  with his new bride.   Again tragedy would visit Jonathan  in Gainesville when Mary Kidder Bliss  died  in 1857 at the age of 48.   The marriage produced no children and Jonathan again  found  himself widowed at age 58.    Two years after the death of his second wife, Jonathan once again returned to his New  England  roots  to  find his  third wife, Maria  Louisa Kidder,  a  first  cousin of his  second wife.28    Maria Kidder was born in 1815, and was some sixteen years younger than Jonathan.  Jonathan,  now age 60 and Maria, age 44 were married on September 30, 1859.29    When they returned to  Gainesville  they would be  faced with  increasing  tensions between  the North and  South  that  would test their loyalties to Alabama and the South.  Given Jonathan’s record with his first two  brides  from  the Northeast,  it’s  a mark of  real  courage  that Maria  agreed  to not only marry  Jonathan,  but  to move  to  Alabama with  him  as well!    This marriage  did  not  produce  any  children.  Economic Success for Bliss and Partners  We do not know what assets Bliss and partners had when they arrived in Alabama, nor  do we know what, if any, losses they incurred during the “hard times” that followed the Panic  of 1837.   Yet  in  spite of whatever  setbacks were encountered  in  the 1840’s and even  in  the  1850’s, the Census of 1860 reveals that Bliss and his partners in Alabama were all quite well‐off.     Jonathan Bliss was by far the wealthiest of the partners with real estate valued at $4,000 and a  personal estate valued at $175,000 in 1860.   Others included David Russell (real estate $26,000  and personal estate of $108,400), William W. Russell, who had returned to New Hampshire by  1860  to  become  a merchant  (real  estate  of  $20,000  and  personal  estate  of  $40,000)  and  William M.  Lewis  (real  estate  of  $55,000  and  personal  estate  of  $60,000).      To  put  these  amounts  into  context,  the  average annual  farm wage  in Alabama  at  the  time was  less  than  $150.  Overseers earned between $200‐$600 annually!30      So  what  occupations  allowed  these  partners  to  earn  such  wealth?      David  Russell  apparently  followed  in Moses  Lewis’  steps and was  listed  as a  “land agent”  in Gainesville  in  1860.   William Russell was  single when he  came Alabama and, apparently unhappy  in  these  surroundings, returned to New Hampshire around 1828 and became a merchant and farmer.31    William M.  Lewis, Moses’  son, was  a  successful merchant  in Gainesville where he  remained  until he died in 1880 at age 81.   The close ties between Jonathan and one of his partners, David  Russell, strengthened when Russell’s son married Bliss’ daughter, Mary E., in 1861.32   But what  do we know about the major source of Jonathan’s wealth?  Paper Money * Nov/Dec 2014 * Whole No. 294 444 Jonathan Bliss and the Gainesville Insurance Company  There are probably  two  factors  that  led  to  Jonathan’s decision  to enter  the  insurance  business in Alabama.  The first was his familiarity with the rapid growth of insurance companies  that occurred  in his home  region.   The  states of Pennsylvania, Maryland, Massachusetts and  New York were the homes to the pioneers of  life  insurance at a time when Jonathan was first  entering the legal profession.33  It’s hard to believe that he was not aware of the rapid growth  of these companies and significant returns they offered early investors.    The  second  experience  that  probably  influenced  Jonathan  to  enter  the  insurance  business is the Gainesville fire that occurred on January 23 of 1855.34    That fire claimed some  30 buildings in Gainesville, with damages estimated at $162,680, with only $17,260 covered by  insurance.  One of the buildings lost was Jonathan’s own office!  We do not know if Jonathan had insured his office or not, but the fact that so much of  Gainesville was not insured against fired must have made an impression on just about everyone  in Gainesville,  including Bliss.   Fire  insurance would now sell  itself  in Gainesville and Bliss may  have seen an opportunity to be in the right place at the right time with an insurance company.  The idea was not a difficult one to sell to potential partners, for Jonathan began with six  partners, one of whom was a partner in the New England Land Company (William M. Lewis, son  of Moses Lewis).  They received their corporate charter from the Alabama General Assembly on  January 22, 1856, one year and one day from the devastating fire.35   Capital  for the Gainesville  Insurance Company was to be a minimum of $50,000 and a  maximum of $200,000, raised through the subscription (sale) of shares of stock at $100 each.   Section 5 of the Act authorized the company to sell insurance on:   “houses,  stables,  gin  houses,  cotton,  corn  and  other  produce,  upon  lives  and  health  both  of white  persons  and  of  slaves,  upon  stock  of  every  description,  upon  vessels,  boats,  freight, money, goods, wares and merchandise, and any other species of property against  loss  in any manner…”.     Of particular  interest here  is  the authorization  to  issue  life  insurance on  slaves.   Bliss  may have been aware that the “demand for policies on slaves was growing rapidly during the  1850s  and  paralleled  the  growth  in  policies  on  northeastern  whites.”36      Bliss  may  have  understood  the  potential  that  this  insurance  product  provided  to  him  as  a  consequence  of  Gainesville’s role as a prime shipping point for cotton.   Slave owners would be regular visitors  to Gainesville and there would be plenty of opportunities to sell them insurance on the cotton  as well as on the slaves.  An  equally promising business opportunity was provided  to  the Gainesville  Insurance  Company in Section 6 of the Act which stated:  “That  the  said  company  shall  be  authorized  to  loan  it’s  moneys  and  funds  from  whatever  source  derived,  at  interest,  to  invest  the  same  in  real  or  personal  securities  by  discounting and deal the same in the purchase and sale of domestic and foreign exchange.”    This  section  of  the  charter  allowed  them  to  make  personal  loans  and  to  deal  in  foreign  exchange,  the  latter  most  likely  British  Pounds  encountered  from  trading  cotton.    The  Gainesville  Insurance  Company  charter  was  far  more  expansive  than  simply  allowing  the  company  to sell  insurance and  in effect allowed  the company  to act as a “private bank” at a  time when banks in general were not held in high esteem!  Paper Money * Nov/Dec 2014 * Whole No. 294 445 Additional benefits provided to the company in their charter are outlined in Section 8 of  the Act:   “Be it further enacted that the said company shall be authorized to receive in Trust, or  on deposit, all funds or moneys that may be offered to them whether on interest or otherwise  and that they have the power to give acknowledgment for deposits in such manner and form as  they may deem convenient and necessary  to  transact such business, all moneys so deposited  being free from loss on indebtedness growing out of the insurance business of said company.”  The Gainesville  Insurance Company could  receive deposits,  issue “acknowledgements”  for  those deposits and make  loans.   The Charter gave protection  to  the depositors  from any  losses which might be incurred by the insurance side of the business.    While we don’t know how much money the Gainesville Insurance Company made from  their  “banking”  business,  the  value  of  Bliss’  estate  in  1860  ($175,000)  suggests  it  was  substantial.   In his Application for Pardon, Bliss stated that his new worth was “unknown” since  it consisted  largely of “moneys owed me”.37     One  interpretation of that statement  is that his  assets were largely personal loans, implicitly made through the Gainesville Insurance Company.  While  there  is no date on  this “receipt” or “certificate of deposit”,  it must have been  issued after the date of incorporation of January 22, 1856 and before the beginning of the Civil  War in 1861.    There is no printer identified on the note, but the quality of engraving and style  of  vignette  suggests  that  it  was  a  northern  printer  who  had  experience  in  the  bank  note  business.    The wording on  this “note” could be also designed  to allow a patron of  the company  who had paid some amount on account and was due $1 in change to receive this “certificate.”   A general shortage of specie such as occurred during the time of the Panic of 1857 may have  made  it  impossible  for merchants  such  as Bliss  and  others  to  provide  specie  as  change  and  these notes were created  to mitigate  that problem.38      If  the merchant was  reputable and  in  good  standing,  as was  probably  the  case with  Jonathan  Bliss,  these  notes  could  then  freely  circulate in the community as a form of “money.”  Because of the wording on these notes, they  would not come in conflict with any existing laws which prohibited the private issue of money.        Although this note is signed by Jonathan A. Bliss, it was not countersigned by the “Secrt.”  (see left bottom).   This may indicate that the note is a “remainder”, a note that was printed but  never actually issued.  Fully signed notes would have most likely been redeemed by their  owners.  Fig 3 ‐  an “acknowledgement for deposit”  authorized by Section 8.  Gainesville  Insurance Company Certificate of Deposit  – No Date. Source:  Courtesy Heritage Auctions  Paper Money * Nov/Dec 2014 * Whole No. 294 446 By  the  second  year  of  the  Civil War,  specie  again  disappeared  from  circulation  and  merchants found  it difficult to make change.   The  solution  to  that problem was  very  similar  to  the  one crafted  following  the Panic of 1837 and  that  was  to  issue  private  scrip.    The  practice  was  widespread  with  banks,  merchants,  railroads,  hotels, stables, and many others  joining  the  fray.   The Gainesville Insurance Company having already  issued  certificates  which  most  likely  had  been  widely  accepted,  joined  others  in  issuing  these  change  notes  in  1862.      What  we  note  immediately about this 1862 note when compared to the earlier note is that the design is very  plain and does not have a central vignette or a printer identification.  The contrast between the  first note and this one suggests that this second note was probably printed in Alabama, perhaps  even in Gainesville by a printer with limited experience in bank note printing.   The prohibition  against northern companies doing business with southern companies would have indeed make  it illegal to use a northern‐based printer.39     Two interesting facts about this note are that (1) it is not signed by Jonathan Bliss, and  (2) it is counter‐signed on the left vertical margin.  Given that Jonathan Bliss spent many of his  summers back in New Hampshire, this note was most likely signed while he was out of state.40    The use of a counter‐signature was also designed to reduce fraud by requiring the authorization  of a second person.  The person who counter‐signed these notes was Nelson T. Dimick, and he  must he have been someone trusted by Jonathan Bliss to control the issue of these notes in his  absence.     Dimick, who  listed  his  occupation  as  ‘Sec.  Tres.”  in  the  1860 Census  lived  in  the  American Hotel.  He died in Gainesville in 1868 at the age of 34.    The 25 cent note is similar to the 10 cent note except for the denomination.  While one  was  reportedly  sold  at  Heritage  Auctions,  there was no  image of the note.   The 50 cent  note  is  again  similar  to  the  10  cent  and  25  cents notes, but  is  an unlisted denomination  in the Rosene book.     The $1 note  (Figure 6)  , $2  (Figure 7)  and $3 (Figure 8) notes are larger in size when  compared  to  the  fractional  issues  but  have  the  added  feature  of  a  somewhat  primative  sketch of a  train with  two  carriages.   The $1  note  is  again  signed  by  someone  other  than  Jonathan Bliss, but  the $2 and $3 are each  signed by him.   They are each counter‐signed by  Nelson T. Dimick.   Fig 4 – The Gainesville  Insurance Company, 10 cents 1862. Courtesy Heritage Auctions  Fig 5 – The Gainesville Insurance Company, 50 cents.   Courtesy of Heritage Auctions.  Paper Money * Nov/Dec 2014 * Whole No. 294 447 These notes were not in circulation for very long because the State of Alabama declared  it  illegal to  issue these types of notes effective December 19, 1862, and  illegal to use them  in  commerce effective April 1, 1863.41   The penalties were sufficient to motivate Jonathan Bliss to  actually run ads  in the  local paper encouraging those holding his notes to bring them  into his  office where he would redeem them for Confederate and/or State issued notes.42  The Civil War Creates Tough Choices  As  tensions  rose between  the North and  the South,  Jonathan and other  “Yankees”  in  Alabama were  faced with  tough  choices.     While  they had worked hard  to  carve out  a new  home  in their adopted South, many remained  loyal to the states from which they came.   This  emotional conflict is revealed in a biography of Jonathan Bliss that appeared in 1894 where the  author stated:  “When  the madness of  secession began  to  rage  in  the South, he  [Bliss] had acquired  property  of  the  value  of  a  hundred  thousand  dollars.    Knowing  the  peaceable  but  determined temper of the North as he did, he strove with all his might to dissuade his  neighbors  from  rushing  into  armed  rebellion,  but  all  to  no  purpose.    Soon  he  was  summoned to declare himself on one side or the other, and reluctantly decided that he  must  cast his  lot with  the  section where he dwelt.   As  an earnest of his  sincerity he  raised  a military  company,  and  armed  and  equipped  them  at  an  expense  of  twenty  thousand dollars.”43 Fig 7 –  The  Gainesville  Insurance  Company,  $2,  1862    Courtesy  Heritage  Auctions.  Fig 6  –  The  Gainesville  Insurance  Company,  $1,  1862    Courtesy  Heritage  Auctions.  Fig 8 –  The  Gainesville  Insurance  Company,  $3,  1862    Courtesy  Heritage  Auctions.  Paper Money * Nov/Dec 2014 * Whole No. 294 448 After the war ended, Jonathan Bliss, along with thousands of others, accepted the opportunity  to petition the President for a Pardon under the Amnesty Act of 1865.44     The act of “general  amnesty” specifically “excluded” a total of 14 classes of  individuals and required them,  if they  wished  to  be  pardoned,  to  directly  petition  the  President  for  clemency.    Included  in  those  excluded  classes  were  those  who  “voluntarily  supported”  the  rebellion  and  had  assets  of  $20,000 or more.  Some  observers  of  the  inclusion  of  “excluded  classes”  by  President  Johnson  was  “intended  that  they  should  sue  for  pardon,  and  so  realize  the  enormity  of  their  crime”.45    Others have argued  that  the $20,000 exclusion was directed  targeted  to  the wealthy class, a  position they say would be consistent with President Johnson populist  leanings.46       Without a  pardon from the President, a person’s property was subject to confiscation.  Jonathan Bliss was  apparently  unwilling  to  expose  himself  and  his  family  to  this  risk  and  thus  he  applied  for  Amnesty  on  August  19,  1865.    In  that  petition,  he  specifically  addresses  a  number  of  the  “exclusions” and  stated  that he was not  in  the military, was not a planter  (e.g., did not own  slaves except  for a  “few house  servants”), did not  serve  in  the government, and  in  fact had  opposed secession before it occurred.  All of this was, one may suppose, to support an implicit  argument  that  he  did  not  provide  “voluntary”  support  for  the  rebellion.      However,  in  a  biography mentioned earlier the author claimed that Jonathan Bliss “raised a military company  and armed and equipped them at an expense of twenty thousand dollars.”47     If this allegation  was in fact true, it would be difficult to conclude that he was not in fact a “voluntary” supporter  of  the  rebellion.     However,  Jonathan  did  not  address  this  allegation  and  in  fact  it was  not  revealed until this biography printed in 1894.  Bliss  cleverly  addressed  some  the  “exclusions”  in  his  petition.   With an estate valued at more than $175,000 and a  clear bias against  the “rich” expressed by President  Johnson,  Bliss did not directly state the value of his estate.   Rather he  cleverly  stated  that  “What  property  I  have  consists  almost  entirely of monies due me and the question whether  I am or  shall  be worth  the  same  named  in  the  13th  exceptions will  depend very much upon what may be the future prosperity of  the South.”48    Bliss claimed, honestly one must agree, that it  was really impossible to know the value of his personal estate  in  the months  immediately  following  the  end  of  Civil War.    But this statement does  in fact support the theory that much  of Bliss’ wealth came from the banking side of the Gainesville  Insurance Company and from personal  loans.   Apparently the  arguments  presented  in  his  petition  were  convincing  and  President  Johnson  signed  his  Amnesty  papers  on March  2,  1866.49     Page 1 of Jonathan Bliss’ Petition  for Amnesty, 1865  Paper Money * Nov/Dec 2014 * Whole No. 294 449 In the End  After  the  end  of  the  war,  Jonathan  Bliss  and  his  wife  Maria  continued  to  live  in  Gainesville.    The  Gainesville  Insurance  Company  would  have  disappeared,  if  not  already  bankrupted  during  the  war.    With  his  rights  restored  under  the  Amnesty  Proclamation,  Jonathan returned to the practice of law.    Jonathan passed away while “on a  journey”  in Cleveland, Ohio on  July 27, 1879, only  days after his 80th birthday.50    With more than 500 individuals in the Cleveland area with the  Bliss family name, this “journey” was most likely one to visit family.     It  is  interesting  to note  that while  Jonathan died  in Ohio and had made many  return  visits  to  New  Hampshire  over  the  years,  he  apparently  chose  to  be  buried  in  Gainesville,  Alabama.    Maria Bliss remained  in the Gainesville area  following Jonathan’s death  living with her  step‐daughter, Martha and her husband (John Warren).51   However, by 1900 she had returned  to  the northeast  to  live with her younger brother  in Massachusetts and  the  last of  Jonathan  Bliss’  family  left Alabama and returned to the northeast.52     Maria Bliss, Jonathan’s third wife  and the only one to outlive him, passed away in 1905 at age 89.   Footnotes 1John Homer Bliss, Genealogy of the Bliss Family in America, From about 1550‐1880, Boston, Massachusetts,  Privately Published, 1881).  Accessed through  2Martha reported married John C. Whitsell in Gainesville in 1839.  She most likely came to Alabama with Jonathan  in 1836. Bliss, Genealogy of Bliss Family.   3 See “Chapman’s Alumni Guide” “Sketches of Alumni of Dartmouth College,” accessed at  4Francis Lane Childs, “A Dartmouth History Lesson for Freshmen,” Dartmouth Alumni Magazine, December 1957,  accessed at    5Charles Henry Bell, The Bench and Bar of New Hampshire (Boston and New York:  The Houghlin Mifflin and  Company, 1894), p. 212.  Accessed at Google Books.  6John Elliott Bowman, “Some Vermont Vital Records of the Early 19th Century,” p.7, accessed through   7 “Officers Who Took Oath of Allegiance at Valley Forge, 1778,” Accessed at Colonial‐presidency. 10“Who Lies Here? Zeba Franklin Bliss, Humble Civil War Veteran,” Taunton Daily Gazette  (, posted August 5, 2013.   11 Bliss, Genealogy of Bliss Family.  12Inscription on memorial states Jonathan Bliss “Came to Alabama Jan. 8, 1836.”  See Findagrave at‐  13Malcolm Rohrbough, The Land Office Business: The Settlement and Administration of American Public Lands,  1789‐1837 (New York:  Oxford University Press, 1968), p. 89  14Rohrbough, 91.  15George Frederick Mellen, “Joseph G. Baldwin and the “Flush Times,” The Swanee Review, Vol. 9, No. 2 (April  1901), p. 176.  Accessed at  16U.S. Department of the Interior, Bureau of Land Management, General Land Office Records.    17Federal Census of Slaves, 1860.  Accessed at  18Thomas McAdory Owen, History of Alabama and Dictionary of Alabama Biography (Chicago: S. J. Clarkf Publishing  Company, 1921), p. 643  (Vol 1 )  Reprinted by Bibliolife.  19For more information about the colorful George Gaines see James P. Pate, The Reminiscences of George Strother  Gaines (Tuscaloosa:  The University of Alabama Press, 1998).  Paper Money * Nov/Dec 2014 * Whole No. 294 450 20George Frederick Mellen, “Joseph G. Baldwin and the “Flush Times”.  21  22Richard J. Behn, “Andrew Jackson, Banks and the Panic of 1837,” The Lehrman Institute, pp.25‐26.  (‐Jackson‐1837.asp)  23John J. Wallis, “What Caused the Crisis of 1839?”, National Bureau of Economic Research Historical Paper 133,  pp. 35‐36.  (www.econweb. umd.eud)  24Leslie Tate, “Woodbury (1816‐1838): The First Morgan Horse in Alabama,”   25James F. Sulzby, Jr. Historic Alabama Hotels and Resorts (Tuscaloosa: The University of Alabama Press, 1960), pp.  14‐15.  26Tate, “Woodbury (1816‐1838)”.  27 “Medford Marriage,” Massachusetts Town and Vital Records, 1620‐1988, p. 252.  Accessed through    28 “A Genealogy of the Kidder Family,” Accessed at  29 “Medford Marriage,” Massachusetts Town and Vital Records.  30Stanley Lebergott, “Wage Trends, 1800‐1900,” in Trends in the American Economy in the 19th Century (Princeton:   Princeton University Press, 1960), p. 453. Accessed at  and Lucille Griffith,  Alabama: A Documentary History (Tuscaloosa: University of Alabama Press) Revised Edition, 1972, p.145.  31Federal Census records of 1850 show that William Russell was living in Plymouth, New Hampshire and that his  wife was born in New Hampshire and that his oldest child listed was born in 1828 in New Hampshire.  That would  mean that William Russell left Alabama no later than 1828.  32See Public Member Trees for David Moor Russell,  Son had same name as father and married Mary  Elizabeth Bliss, May 1, 1861.  At some point they relocated to Mississippi  33Sharon Ann Murphy, Investing in Life: Insurance in Antebellum America (Baltimore:  The Johns Hopkins University  Press, 2010), p.4.   34See History of Sumter County, Alabama, Heritage Publishing Consultants, (Clanton, Alabama, 2005). p.142.  35Act 294, “An Act to Incorporate the Gainesville Insurance Company,” Acts of the General Assembly of Alabama,  January 22, 1856.  Alabama Department of Archives and History, Montgomery, Alabama.  36Murphy, p.184.  37See Confederate Applications for Presidential Pardons, National Archives Microfilm Publications. Accessed  through  38See Charles W. Calomiris and Larry Schweikart, “The Panic of 1857: Origins, Transmission, and Containment,” The  Journal of Economic History, Vol. 51, No. 4 (December 1991), pp. 807‐834.  Available at  39President Abraham Lincoln signed the “Non‐Intercourse Act” Aug 26, 1861, which made it illegal to do business  between northern and southern companies  40 This was a statement made by Jonathan Bliss in his Application for a Pardon.  See Confederate Applications for  Presidential Pardons.  41Act 34, “To Prevent the Circulation of Change Bills”, Acts of the Called Session, 1862, General Assembly of  Alabama , Alabama Department of Archives and History, Montgomery, Alabama.  42The Independent, Gainesville, Alabama, December 20, 1862, Department of Archives and History, State of  Alabama.   43Charles Henry Bell, The Bench and Bar of New Hampshire.  44“Andrew Johnson: Proclamation of Amnesty and Pardon for the Confederate States,” in Encyclopedia Britannica’s  Guide to American Presidents,  45“Introduction” to Confederate Applications for Presidential Pardons, National Archives Microfilm Publications, p.  2. Accessed by  46“Andrew Johnson: Proclamation of Amnesty and Pardon for the Confederate States,”  47Charles Henry Bell, The Bench and Bar of New Hampshire.  48Jonathan A. Bliss, “Confederate Applications for Presidential Pardons,” p.3.    49 “U.S. Pardons under Amnesty Proclamations, 1865‐1869”, accessed through  50“A Genealogy of the Kidder Family,” Accessed at  51Federal Census of 1880.  Accessed at  52Federal Census of 1900. Accessed at  Paper Money * Nov/Dec 2014 * Whole No. 294 451 Chump Change Loren Gatch Of Butterflies and Banknotes A few issues ago I published a short piece on “Thoreau Money”, a kind of anti-war scrip promoting tax resistance during the 1960s. I had fun researching and writing up the story, and was gratified by good reader feedback. While doing the work I came upon a similar example of countercultural ephemera, the “Digger Dollar”, put out by a Haight-Ashbury anarchist group, the Diggers, that was active during the same years. Among other things, the Diggers promoted the concept of “Free” –free food, clothing, shelter—as part of their challenge to the dominant values of a capitalist society. While long defunct, the Diggers’ former members have maintained a website to document that era. It was there that I encountered a plaintive rant against the commercialization of Digger artifacts, in particular against the idea that a Digger Dollar would actually sell for actual dollars: [A] copy of a Digger Dollar came up for sale on a dealer's site…It came as a shock to me when I found someone selling Digger items online. The Digger philosophy was always Free…when a Digger Dollar gets sold for $300, that gets my attention… Let's hope that the demand for these materials slackens. And hope that this site isn't helping propel the paradox of collector demand which is anathema to archivists everywhere. I found that last line particularly striking, since it blamed collectors—who by their nature seek to preserve what they collect—for creating the economic pressures that make more difficult the preservation of the past. I’ve encountered this attitude elsewhere. Back in June of this year, an online discussion thread about local currencies addressed the influence of collectors on local currency initiatives, in particular on Kenya’s Bangla-Pesa, an exchange medium used in the slums of Mombasa: As far as currency collectors go - I find them to be generally a nuisance. They remove money from circulation and also give people the idea that the local currency should be hoarded in case they can find more collectors. Ouch! As both a supporter and a collector of local currencies, this slap hurt. All the same, I take the complaint seriously: Is there something about the very notion of collecting—collecting anything—that undermines the value or even the meaning of the thing collected? To collect anything takes it out of its original world and places it in a new one. The literary critic Walter Benjamin once described collecting as a “relationship to objects which does not emphasize their functional, utilitarian value—that is, their usefulness—but studies and loves them as the scene, the stage, of their fate.” Benjamin’s love was for books, but this logic applies to almost anything a collector might fancy. The collector of dolls doesn’t play with them; the philatelist doesn’t send letters with her collection; and a rock hound preserves his geological treasures from the erosion of the elements. If anything, this disconnect between the functions of money and its collectability is even more complete. Coins and bills are meant to circulate until they are worn, tattered or simply lost. Plucking money from the swirl of commerce and mounting it in a mylar holder is like a lepidopterist skewering a Monarch with his pin of permanent immobility: it looks like a butterfly, but no longer is one in the sense of fulfilling its nature to float along with the vagaries of the wind. As a kid, what drew me into coin collecting wasn’t the luster of uncirculated pieces, but the grubbiness of the worn ones. A smooth Barber quarter or a dateless Buffalo nickel was an utterly exotic, almost shocking discovery for me. Their very effacement forced the question, how many and whose hands did you go through to get like that; what experiences scoured you so? Alas, the coins remained mute and their secrets undivulged, but it was that very mystery that first stoked my passion for collecting. When collectors grow up they give themselves fancy names (numismatists, notaphilists), and the aesthetics of their hobbies are the reverse of childhood. It’s precisely the flawless specimens that command the most esteem (and highest price)—all precisely graded and slabbed, carefully protected from the grubby touch of that original child’s curious hands. The collector’s goal is to acquire, for that is his obsession to do. But, as Benjamin continued, mere acquisition is only the beginning: “the period, the region, the craftsmanship, the former ownership—for a true collector the whole background of an item adds up to a magic encyclopedia whose quintessence is the fate of this object.” I probably never will own a Digger Dollar (I’d feel too guilty at this point!), but if collecting is really just a pretext for curiosity, then its story remains yet another mystery to research and explore. And I look forward to it. Paper Money * Nov/Dec 2014 * Whole No. 294 452 President’s Column Nov/Dec 2014 I write this at the approach of peak leaf season here in New England on a beautiful sunny day with the leaves approaching full color! Fall comes early here compared to Atlanta, GA where I used to reside until 2011 and also marks a break between major coin and paper money shows. I wrote about the major summer ANA show in my last column where we had a significant Society of Paper Money Collectors presence – booth, meeting, dealers, and collectors - a great show. If you cannot make Memphis, the next two favorite shows for me are the winter Florida United Numismatists (FUN) show and the summer American Numismatic Association (ANA) show where a significant presence of paper money and SPMC people can congregate. Shows I’ve attended since ANA have been the Blue Ridge Show in Dalton GA, Long Beach, CA, and a local show in Westford MA. Blue Ridge has a long tradition of a good number of paper money collectors and dealers present. We did not do a Society meeting this year due to scheduling challenges for rooms at the convention center, but will look into it for next year. ANA President Walt Ostromecki attended this year’s Blue Ridge meeting with collectors and dealers of the ANA, SPMC and others. This was a well- attended and fun show. Long Beach, CA was a first for me in many years. It is the largest show on the west coast, similar to what Baltimore is for the east. Despite it mainly being considered a coin show, it actually has quite a variety of hobby collectibles including a large contingent of paper money dealers, some of whom we do not regularly see in the east. The next Long Beach is in January – a great time to be in southern California catching up with fellow paper money aficionados! Local shows are also fun and can be well attended by people you may get to know on a regular basis and see at local coin and paper money clubs. I attend the Westford MA show, but there are many like this around the country. If you have not attended a show before, try one of these before venturing further. You will find any of these shows interesting and the opportunity to see people directly, converse, share items of interest is precious! The SPMC obsolete database project led by Vice President Shawn Hewitt is coming along. This is a proposal for an online database of U.S. Obsolete Notes in a manner similar to the web portal Wikipedia, where anyone can contribute to the pool of information, and experts in their respective fields can correct and maintain the integrity of the data. There is a twofold scope to the project: 1) to catalog all known obsolete notes, and 2) to keep a census of all known notes. A beginning phase of the project is likely to be focused on a catalog and a census, where every known note can be recorded with the assistance of contributors. This project may also be scalable to other types of notes as well, e.g. CSA. This is an exciting project that fits squarely within the mission of the SPMC – education. I look forward to seeing the test runs of this in the relatively near future. Many of us enjoy the local/regional SPMC meetings. We need people who regularly attend shows to help with these going forward. In particular are FUN, GNA, ANA and Blue Ridge where in addition to Memphis we have historically held SPMC meetings. Other locales and shows are welcome to be added. This is an easy role to contribute to the Society and hobby at large with. You would take ownership of one meeting in one locale, once a year. You only need to contact the show chairperson, arrange a room (we pay for it if needed), beverages and or snacks, and arrange for a speaker. These are fun and educational meetings and many of us want to see this continue. Happy Hunting on the Paper Trails of Numismatics! Pierre Fricke Paper Money * Nov/Dec 2014 * Whole No. 294 453 W_l]om_ to Our N_w M_m\_rs! \y Fr[nk Cl[rk—M_m\_rship Dir_]tor SPMC NEW MEMBERS SPMC NEW MEMBERS 09/05/2014 - 14291 – 14303 10/05/2014 - 14304 - 14309 14291 David Jones, (C & D),US Small and Special Serial Numbers, Scott Lindquist 14292 David Schwager,(C), Frank Clark 14293 Takafumi Akimoto,(C), Website 14294 Melissa Gumm, (C), Website 14295 Clay Learned, (C), Website 14296 Bernie Caviness, (C), Website 14297 Nicholas Gessler, (C & D), David Bowers 14298 Gerard DeFoe,(C), Website 14299 Kevin Cavanaugh, (C), Black Book Price Guide to US Paper Money 14300 David Suddarth, C), Website 14301 Harry Cohen, (C), Mark Anderson 14302 Rick Ewing, (C), Frank Clark 14303 Anthony T. Bucci, (C), Wendell Wolka REINSTATEMENTS None LIFE MEMBERSHIPS None 14304 Josh Kelley, (C), Website 14305 Ken Chylinski, (C & D), Frank Clark 14306 Robert Boesel, (C), Jason Bradford 14307 Robin Kontra, (C), Jason Bradford 14309 Glenn J. Ackerman, Jr, (C), Frank Clark REINSTATEMENTS None LIFE MEMBERSHIPS None For Membership questions, dues and contact information go to our website Paper Money * Nov/Dec 2014 * Whole No. 294 454 Editor Sez Happy Holidays and Reflections on the first five issues! Hello and Happy Holidays! I hope you all have a great holiday season, no matter what your celebratory type is. This is really a cool time of year and one that I enjoy immensely, not in the least of which is all the wonderful food I get to eat. This edition of Paper Money is our gift to you—full of color and very informa- tive articles. It was neat seeing the lead article from Mark and Len come together. I hope some of you were able to see Len’s exhibit of his currency Christmas cards at Memphis a few years back. The ones pic- ture in the article are great, but knowing he has a LOT more is staggering. A big congratulations to Claud and Judith Murphy. At the recent North Caroli- na Numismatic Association convent ion, they were awarded the Ted Hendrick award. The award was inscribed “For serving the numismatic community with integrity, courtesy and unbounded enthu- siasm.” Mr. Hendricks and the Murphy’s served together on the committee selected by the governor to help choose the design for the North Carolina State quarter. Another item for paper money afi- cionados is that one of the first, if not the first collections of hometown currency can now be viewed entirely on-line. William Youngerman invites all paper money en- thusiasts to view it at He states that a brick and mortar museum was considered, but in this age of virtual reality, people are less likely to travel to a museum when they can access it on- line. “Numismatics has always been very dear to us over the past 50 years of being in business. Collecting has always been a passion with me and it is my hope that the museum will encourage others to get involved in this great hobby of ours. Simply speaking, it is one of the ways I feel I can give back to a hobby & business that has been good to us.” The completeness of the Florida collec- tion was made possible last November with the acquisition of the famous Senator Warren Henderson/Barnett Bank collection of Florida Currency. Youngerman encourages all to view the site & submit any items not shown for possible inclusion & to make regular revisits to the site as new items are added daily. This is the fifth issue of Paper Money that I have done as the primary editor. It has been a very rewarding but much more chal- lenging position than I could have imagined. I have served as newsletter editor for the frac- tional currency club and the Texas Numis- matic Association, so I thought I had a handle on this job. WRONG! What a difference. Putting out an 80 page high quality magazine with outstanding researchers and authors is quite different than my little operations where I did it at home and had it copied at the local Kinko’s type store. Not to be a whiner, but to just let you know that I have been learning along the way and have made a lot of mistakes, none of which I hope have affected you. I have learned a lot of new words (some that I can- not repeat here). I had to learn a new com- puter program to put articles and ads in an acceptable PDF format (not any old PDF for- mat will do). Also, what is the deal with spell check? Were you aware that sometime coin dealers became con dealers in spell check? OOOps. Don’t make that error too often! And finally, I have had a lot of people submit arti- cles which I appreciate. I promise that I will get them published, but it is taking more time than I anticipated to get them all formatted so please bear with me and keep them coming! Benny Texting and Driving—It can wait! Paper Money * Nov/Dec 2014 * Whole No. 294 455 WANT ADS WORK FOR YOU We could all use a few extra bucks. Money Mart ads can help you sell duplicates, advertise wants, increase your collection, and have more fun with your hobby. Up to 20 words plus your address in SIX BIg ISSUES only $20.50/year!!!! * * Additional charges apply for longer ads; see rates on page above -- Send payment with ad Take it from those who have found the key to “Money Mart success” Put out your want list in “Money Mart” and see what great notes become part of your collecting future, too. (Please Print) ______________________________ ___________________________________ ___________________________________ ___________________________________ ONLY $20.50 / YEAR ! ! ! (wow) $$ money mart Paper Money will accept classified advertising on a basis of 15¢ per word (minimum charge of $3.75). Commercial word ads are now allowed. Word count: Name and address count as five words. All other words and abbre- viations, figure combinations and initials count as separate words. No checking copies. 10 discount for four or more insertions of the same copy. Authors are also offered a free three-line classified ad in recognition of their contribution to the Society. These ads are denoted by (A) and are run on a space available basis. Special: Three line ad for six issues ‘ only $20.50! Stamford CT Nationals For Sale or Trade. Have some duplicate notes, prefer trade for other Stamford notes, wil l consider cash. (293) WANTED: 1778 NORTH CAROLINA COLONIAL $40. (Free Speech Motto). Kenneth Casebeer, (828) 277-1779; WORLD PAPER MONEY. 2 stamps for new arrival price list. I actively buy and sell. Mention PM receive $3 credit. 661-298-3149. Gary Snover, PO Box 1932, Canyon Country, CA 91386 (288) "Collecting Paper Money with Confidence" All 27 grading factors expained clearly and in detail. Now available at (294) Authors can request a free one-time ad. Contact the Editor (A) WANTED: Notes from the State Bank of Indiana, Bank of the State of Indiana, and related documents, reports, and other items. Write with description (include photocopy if possible) first. Wendell Wolka, PO Box 1211, Greenwood, IN 46142 (294) vermont National Bank Notes for sale. For l ist contact. (294) WANTED: Any type Nationals from Charter #10444 Forestville, NY. Contact with price. Leo Duliba, 469 Willard St., Jamestown, NY 14701- 4129.t (295) FREQUENT PAPER MONEY AUTHOR (Joaquin Gil del Real) Needs a copy of the Mar/Apr 1997 issue of the SPMC journal to complete his col- lection.  Contact me if you can assist in this matter. (A) TRADE MY DUPLICATE, circulated FRN $1 star notes for yours I need. Have many in the low printings. Free list. Ken Kooistra, PO Box 71, Perkiomenville, PA 18074. (288) BUYINg ONLY $1 HAWAII OvERPRINTS. White, no stains, ink, rust or rubber stamping, only EF or AU. Pay Ask. Craig Watanabe. 808-531- 2702. (291) Paper Money * Nov/Dec 2014 * Whole No. 294 456 United States Paper Money special selections for discriminating collectors Buying and Selling the finest in U.S. paper money Individual Rarities: Large, Small National Serial Number One Notes Large Size Type Error Notes Small Size Type National Currency Star or Replacement Notes Specimens, Proofs, Experimentals Frederick J. Bart Bart, Inc. website: (586) 979-3400 PO Box 2 • Roseville, MI 48066 e-mail: You are invited to visit our web page For the past 13 years we have offered a ,good selection of conservatively graded. reasonably priced currency for the collector. All notes are imaged for your review NATIONAL BANK NOTES LARGE SIZE TYPE NOTES SMALL SIZE TYPE NOTES SMALL SIZE STAR NOTES OBSOLETES CONFEDERATES ERROR NOTES TIM kYZIVAT (708) 784-0974 P.O. BOX 401 WESTERN SPRINGS, IL 60558 e-MAIL: TKYZIVAT@KYZIVATCURRENCY.COM The Collectorama Show  CURRENCY ‐ PAPER COLLECTIBLES ‐ COINS  OCTOBER 17 ‐ 19, 2014  FEBRUARY 13‐15, 2015  The Lakeland Center  701 West Lime Street, Lakeland, FL 33815  Web Site:   Ed Kuszmar ‐ 561‐392‐8551  FLORIDA CURRENCY AND COINS 2290 NW Boca Raton Blvd. Suite 9  Boca Raton, FL 33429  Mail: PO Box 294049, Boca Raton, FL 33429  VISIT OUR NEW WEB SITE  We buy and sell many different and unusual  U.S. Currency items and Neat Paper Americana.  We do not buy or sell third party graded Currency.  For more information call Ed Kuszmar – 561‐392‐8551  Fractional Currency Collectors Join the Fractional Currency Collectors Board (FCCB) today and join with other collectors who study, collect and commiserate about these fascinating notes. New members get a copy of Milt Friedberg’s updated version of the Encyclopedia of United States Postage and Fractional Currency as well as a copy of the Simplified copy of the same which is aimed at new collectors. New members will also get a copy of Rob Kravitz’s 1st edition “A Collector’s Guide to Postage and Fractional Currency” while supplies last. New Membership is $30 or $22 for the Simplified edition only To join, contact William Brandimore, membership chairman at 1009 Nina, Wausau, WI 54403. Paper Money * Nov/Dec 2014 * Whole No. 294 457 Florida Paper Money Ron Benice “I collect all kinds of Florida paper money” 4452 Deer Trail Blvd. Sarasota, FL 34238 941 927 8765 Books available,,, Paper Money • March/April 2014 • Whole No. 290 158 MYLAR D® CURRENCY HOLDERS PRICED AS FOLLOWS BANK NOTE AND CHECK HOLDERS SIZE INCHES 50 100 500 1000 Fractional 4-3/4" x 2-1/4" $21.60 $38.70 $171.00 $302.00 Colonial 5-1/2" x 3-1/16" $22.60 $41.00 $190.00 $342.00 Small Currency 6-5/8" x 2-7/8" $22.75 $42.50 $190.00 $360.00 Large Currency 7-7/8" x 3-1/2" $26.75 $48.00 $226.00 $410.00 Auction 9 x 3-3/4" $26.75 $48.00 $226.00 $410.00 Foreign Currency 8 x 5 $32.00 $58.00 $265.00 $465.00 Checks 9-5/8 x 4-1/4" $32.00 $58.00 $265.00 $465.00 SHEET HOLDERS SIZE INCHES 10 50 100 250 Obsolete Sheet End Open 8-3/4" x 14-1/2" $20.00 $88.00 $154.00 $358.00 National Sheet Side Open 8-1/2" x 17-1/2" $21.00 $93.00 $165.00 $380.00 Stock Certificate End Open 9-1/2" x 12-1/2" $19.00 $83.00 $150.00 $345.00 Map & Bond Size End Open 18" x 24" $82.00 $365.00 $665.00 $1530.00 You may assort note holders for best price (min. 50 pcs. one size). You may assort sheet holders for best price (min. 10 pcs. one size). SHIPPING IN THE U.S. (PARCEL POST) FREE OF CHARGE Mylar D® is a Registered Trademark of the Dupont Corporation. This also applies to uncoated archival quality Mylar® Type D by the Dupont Corp. or the equivalent material by ICI Industries Corp. Melinex Type 516. DENLY’S OF BOSTON P.O. Box 51010, Boston, MA 02205 • 617-482-8477 ORDERS ONLY: 800-HI-DENLY • FAX 617-357-8163 See Paper Money for Collectors Harlan J. Berk, Ltd. “The Art & Science of Numismatics” 31 N. Clark Street Chicago, IL 60602 312/609-0016 • Fax 312/609-1305 e-mail: A Full-Service Numismatic Firm Your Headquarters for All Your Collecting Needs PNG • IAPN • ANA • ANS • NLG • SPMC • PCDA DBR Currency We Pay top dollar for *National Bank notes *Large size notes *Large size FRNs and FBNs P.O. Box 28339 San Diego, CA 92198 Phone: 858-679-3350 Fax: 858-679-7505 See out eBay auctions under user ID DBRcurrency HIGGINS MUSEUM 1507 Sanborn Ave. • Box 258 Okoboji, IA 51355 (712) 332-5859 email: Open: Tuesday-Sunday 11 to 5:30 Open from Memorial Day thru Labor Day History of National Banking & Bank Notes Turn of the Century Iowa Postcards Paper Money * Nov/Dec 2014 * Whole No. 294 458 OUR MEMBERS SPECIALIZE IN NATIONAL CURRENCY They also specialize in Large Size Type Notes, Small Size Currency, Obsolete Currency, Colonial and Continental Currency, Fractionals, Error Notes, MPC’s, Confederate Currency, Encased Postage, Stocks and Bonds, Autographs and Documents, World Paper Money . . . and numerous other areas. THE PROFESSIONAL CURRENCY DEALERS ASSOCIATION is the leading organization of OVER 100 DEALERS in Currency, Stocks and Bonds, Fiscal Documents and related paper items. PCDA • Hosts the annual National and World Paper Money Convention each fall in St. Louis, Missouri. Please visit our Web Site for dates and location. • Encourages public awareness and education regarding the hobby of Paper Money Collecting. • Sponsors the John Hickman National Currency Exhibit Award each June at the Memphis Paper Money Convention, as well as Paper Money classes at the A.N.A.’s Summer Seminar series. • Publishes several “How to Collect” booklets regarding currency and related paper items. Availability of these booklets can be found in the Membership Directory or on our Web Site. • Is a proud supporter of the Society of Paper Money Collectors. To be assured of knowledgeable, professional, and ethical dealings when buying or selling currency, look for dealers who proudly display the PCDA emblem. The Professional Currency Dealers Association For a FREE copy of the PCDA Membership Directory listing names, addresses and specialties of all members, send your request to: PCDA James A. Simek – Secretary P.O. Box 7157 • Westchester, IL 60154 (630) 889-8207 Or Visit Our Web Site At: Annual Sales Exceed $900 Million ❘ 850,000+ Online Bidder-Members 3500 Maple Ave. ❘ Dallas, TX 75219 ❘ 800-USCOINS (872-6467) ❘ DALLAS ❘ NEW YORK ❘ BEVERLY HILLS ❘ SAN FRANCISCO ❘ HOUSTON ❘ PARIS ❘ GENEVA Paul R. Minshull #AU4563; Heritage #AB665 & AB2218. BP 17.5%; see 30993 PLATINUM NIGHT® & SIGNATURE® AUCTIONS JANUARY 7-13, 2015 | ORLANDO | LIVE & ONLINE Now accepting consignments for our Offi cial Auctions of FUN 2015 Contact one of our currency specialists today 800-872-6467, Ext. 1001 Ruckersville, GA- Ruckersville Banking Co. $5 G6 Remainder The Alan Dorris Collection of Georgia Obsolete Currency Savannah, GA- Bank of Commerce $500 Oct. 1, 1857 Proof The Alan Dorris Collection of Georgia Obsolete Currency Cape May, NJ - $10 1882 Brown Back Fr. 490 The First NB Ch. # (E) 5839 Savannah, GA- Central Railroad and Banking Co. of Georgia $500 Proof   The Alan Dorris Collection of Georgia Obsolete Currency Double Back Error Fr. 2027-E $10 1985 Federal Reserve Note        PCGS Extremely Fine 40 Pennsylvania Aug. 10, 1739 5s    PCGS Apparent Choice About New 55   Fr. 1 $5 1861 Demand Note          PMG Choice Very Fine 35 30993_3531_3532 SPMC_NovDec2014_Con2FUN.indd 1 9/26/14 9:40 AM